Exercise 8-2 Recording costs of assets LO C1

Cala Manufacturing purchases land for $435,000 as part of its plans to build a new plant. The company pays $44,200 to tear down an old building on the lot and $65,339 to fill and level the lot. It also pays construction costs $1,693,200 for the new building and $106,880 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.

Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Credit Debit Land 1 Record entry Clear entry View general journal