A company needed a new building.It found a suitable location with an existing old building on the land.The company reached an agreement to buy the land and the building for $960,000 cash.The old building was demolished to make way for the needed new building.Following is information regarding the demolition of the old building and construction of the new one:
$$\begin{array} { l l }
\text { Construction cost of new building } & \$ 8,900,000 \
\text { Cost for parking lot } & \$ 260,000 \
\text { Denolition of old building } & 200,000 \
\text { Proceeds fron sale of salvaged materials from old building } & 70,000
\end{array}$$
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.

Question

A company needed a new building.It found a suitable location with an existing old building on the land.The company reached an agreement to buy the land and the building for $960,000 cash.The old building was demolished to make way for the needed new building.Following is information regarding the demolition of the old building and construction of the new one:
 $$\begin{array} { l l } 
\text { Construction cost of new building } & \$ 8,900,000 \
\text { Cost for parking lot } & \$ 260,000 \
\text { Denolition of old building } & 200,000 \
\text { Proceeds fron sale of salvaged materials from old building } & 70,000
\end{array}$$ 
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.

Quizplus · Accepted Answer

The Answer of A company needed a new building.It found a suitable location with an existing old building on the land.The company reached an agreement to buy the land and the building for $960,000 cash.The old building was demolished to make way for the needed new building.Following is information regarding the demolition of the old building and construction of the new one:
 $$\begin{array} { l l } 
\text { Construction cost of new building } & \$ 8,900,000 \
\text { Cost for parking lot } & \$ 260,000 \
\text { Denolition of old building } & 200,000 \
\text { Proceeds fron sale of salvaged materials from old building } & 70,000
\end{array}$$ 
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.

A Company Needed a New Building Prepare a Single Journal Entry to Record the Above Costs