Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 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
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Cala Manufacturing purchases land for $459,000 as part
of its plans to build a new plant. The company pays
$39,800 to tear down an old building on the lot and
$58,835 to fill and level the lot. It also pays construction
costs of $1,498,000 for the new building and $94,558 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
General Journal
Debit
Credit
1
Record entry
Clear entry
View genera
Transcribed Image Text:Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 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 General Journal Debit Credit 1 Record entry Clear entry View genera
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