Cala Manufacturing purchases land for $329,000 as part of its plans to build a new plant. The company pays $36,600 to tear down an old building on the lot and $54,104 to fill and level the lot. It also pays construction costs of $1,256,600 for the new building and $79,320 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. View transaction list Journal entry worksheet < A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit
Cala Manufacturing purchases land for $329,000 as part of its plans to build a new plant. The company pays $36,600 to tear down an old building on the lot and $54,104 to fill and level the lot. It also pays construction costs of $1,256,600 for the new building and $79,320 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. View transaction list Journal entry worksheet < A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cala Manufacturing purchases land for $329,000 as part of its plans to build a new plant. The company pays $36,600 to tear down an
old building on the lot and $54,104 to fill and level the lot. It also pays construction costs of $1,256,600 for the new building and
$79,320 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.
View transaction list
Journal entry worksheet
< A
Record the total costs of the plant assets.
Note: Enter debits before credits.
Transaction
1
General Journal
Prox
Debit
1 of 10
Credit
Next
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