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:
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.
Definitions:
Certificate of Deposit
A savings certificate entitling the bearer to receive interest, which has a fixed maturity date, and typically restricts withdrawal of funds before that date.
Breached the Peace
Breaching the peace refers to causing a disturbance or acting in a manner that disrupts public order or tranquility, often leading to legal penalties.
Public Lot
A plot of land owned by a governmental entity and made available for public use or development.
Unsecured Creditor
A creditor that does not have a claim to specific assets of the borrower as collateral for the debt, placing them at a higher risk of loss.
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