Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $266,000 for the lot plus $161,000 for the old building. The company pays $33,200 to tear down the old building and $49,078 to fill and level the lot. It also pays a total of $1,813,475 in construction coststhis amount consists of $1,705,800 for the new building and $107,675 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Journal entry worksheet Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal