Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The company pays $35,100 to tear down an old building on the lot and $51,887 to fill and level the lot. It also pays construction costs of $1,278,200 for the new building and $80,684 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The company pays $35,100 to tear down an old building on the lot and $51,887 to fill and level the lot. It also pays construction costs of $1,278,200 for the new building and $80,684 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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