Exerdieg 9-2 Recording costs of real estate-land versus building costs 2 Recordi

Question

Exerdieg 9-2 Recording costs of real estate-land versus building costs 2 Recording costs of real estate-Jand versus building costs LO1 CHECK FIGURE: Dr Land $1,860,000 g to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building was located. for the building. The company paid $76,000 to have the old building torn down and $105,000 for The negotiated purchase price for this real estate was $1,200,000 for the lot plus $480,000 CHECK lot. Finally, it paid $2,880,000 in construction costs, which included the cost of a new lighting and paving a parking lot next to the building. Present a single journal entry to record the costs in curred by Kaliljsto,all of which were paid in cash (assume a date of March 10,2017, for your entry). Jacka is five

Explanation / Answer

Date General journal Debit Credit 10-Mar-17 Land          1,860,000 Building          2,880,000 Land improvements              215,000 Cash          4,955,000 Land costs: Large lot price          1,680,000 Demolistion                75,000 Levelling costs              105,000 Total          1,860,000

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