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 $ 280,000 for the lot plus $ 110,000 for the old building. The company pays $ 33,500 to tear down the old building and $ 47,000 to fill and level the lot. It also pays a total of $ 1,540,000 in construction costs — this amount consists of $ 1,452,200 for the new building and $ 87,800 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.
Answer to relevant QuestionsLiltua Company pays $ 375,280 for real estate plus $ 20,100 in closing costs. The real estate consists of land appraised at $ 157,040; land improvements appraised at $ 58,890; and a building appraised at $ 176,670. Allocate ...Veradis Company owns a building that appears on its prior year-end balance sheet at its original $572,000 cost less $429,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year ...Refer to the statement of cash flows for Arctic Cat in Appendix A for the fiscal year ended March 31, 2011, to answer the following. 1. What amount of cash is used to purchase property and equipment? 2. How much depreciation ...Yoshi Company completed the following transactions and events involving its delivery trucks. 2012 Jan. 1 Paid $ 20,515 cash plus $ 1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $ 2,000 ...On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4 mil-lion tons of recoverable ore. It installs machinery costing $400,000 that has a 16-year life and no salvage value and is ...
Post your question