In 2020, DelCano Properties paid $540,000 for a tract of land on which two buildings were located. The plan was to demolish Building A and build a new factory (Building C) in its place. Building B was to be used as a company office and was appraised at a value of $189,108. A lighted parking lot near Building B had improvements valued at $50,058. Without considering the buildings or improvements, the tract of land was estimated to have a value of $317,034.

The company incurred the following additional costs:

Cost to demolish Building A ........................................................................... $ 46,800
Cost to landscape new building site ................................................................. 69,000
Cost to construct new building (Building C) .................................................. 542,400
Cost of new land improvements (Land Improvements C) ............................. 40,500

Required

1. Prepare a schedule having the following column headings: Land, Building B, Building C, Land Improvements B, and Land Improvements C. Allocate the costs incurred by the company to the appropriate columns and total each column.

2. Prepare a single journal entry dated June 1 to record all the incurred costs, assuming they were paid in cash on that date.