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Cala Manufacturing purchases land for $455,000 as part of its plans to build a new plant. The company pays $41,600 to tear down an old building on the lot and $61,496 to fill and level the lot. It also pays construction costs of $1,675,600 for the new building and $105,769 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.

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anthougo

The preparation of a single journal entry to record these costs incurred by Cala Manufacturing is as follows:

Journal Entry:

Debit Land $455,000

Debit Land (Demolition of the old building) $41,600

Debit Land (Filling and leveling the lot) $61,496

Debit Building $1,675,600

Debit Pavement and Parking lot $105,769

Credit Cash $2,339,465

  • To record the costs incurred for land, building, pavement, and parking lot.

Data Analysis:

Land $455,000

Land (Demolition of the old building) $41,600

Land (Filling and leveling the lot) $61,496

Building $1,675,600

Pavement and Parking lot $105,769

Cash $2,339,465

Learn more about single journal entries at https://brainly.com/question/14279491

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