Exercise $8-2($Algo$)$ Recording costs of assets LO C$1$

Cala Manufacturing purchases land for $$417,000$ as part of its plans to build a new plant. The company pays $$38,900$ to tear

down an old building on the lot and $$57,504$ to fill and level the lot. It also pays construction costs of $$1,636,400$ for the new

building and $$103,294$ 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.

Answer is complete but not entirely correct.Exercise $8-2($Algo$)$ Recording costs of assets LO C$1$

Cala Manufacturing purchases land for $$417,000$ as part of its plans to build a new plant. The company pays $$38,900$ to tear

down an old building on the lot and $$57,504$ to fill and level the lot. It also pays construction costs of $$1,636,400$ for the new

building and $$103,294$ 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.

Answer is complete but not entirely correct.