Exercise 8-2 Recording costs of assets LO C1 Cala Manufacturing purchases land for $367,000 as part of its plans to build a new plant. The company pays $42.100 to tear down an old building on the lot and $62,235 to fill and level the lot. It also pays construction costs $1,299,300 for the new building and $82,016 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.

Exercise 8-2 Recording costs of assets LO C1 Cala Manufacturing purchases land for $367,000 as part of its plans to build a new plant. The company pays $42.100 to tear down an old building on the lot and $62,235 to fill and level the lot. It also pays construction costs $1,299,300 for the new building and $82,016 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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