Exercise $10-2($Static$)$ Recording costs of assets LO C$1$

Cala Manufacturing purchases land for $$390,000$ as part of its plans to build a new plant. The company pays $$33,500$ to tear down an old building on the lot and $$47,000$ to fill and level the lot. It also pays construction costs of $$1,452,200$ for the new building and $$87,800$ 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.