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

question 165

Essay

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.

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Definitions:

Spanish Expansion

The period during which Spain explored and conquered territories across the Americas and parts of Asia and Africa, from the late 15th through early 17th centuries, significantly extending Spanish influence and power.

Missions

Religious communities or campaigns undertaken with the aim of promoting Christianity in foreign or indigenous territories.

California

A state located on the West Coast of the United States, known for its diverse ecology, large economy, and significant cultural influence.

Cultural Identity

A person's or group's sense of belonging or identity within a particular culture, influenced by traditions, language, religion, and social practices.