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

points

Cala Manufacturing purchases land for $$485,000$ as part of its plans to build a new plant. The company pays $$31,700$ to tear down an

old building on the lot and $$46,861$ to fill and level the lot. It also pays construction costs of $$1,287,600$ for the new building and

$$81,277$ 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.