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

question 76

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:
$\begin{array}{|l|r|}\hline\begin{array}{l}\text { Construction cost of new building including } \$ 660,000 \\\text { for parking lot }\end{array} & \$ 9,560,000 \\\hline \text { Demolition of old building } & 300,000 \\\hline \text { Proceeds from sale of salvaged materials from old building } & 120,000\\\hline\end{array}$

Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.

---

Definitions:

Information Technology's Impact

Refers to the significant influence that technological advancements in information processing, storage, and dissemination have on society, businesses, and individual behavior.

Organization's Structure

The arrangement of tasks, responsibilities, and authority within an organization, dictating how activities and resources are coordinated and controlled.

The World Is Flat

A metaphorical phrase suggesting that technological advancements have leveled the competitive playing fields in global business.

Thomas Friedman

An American journalist, author, and three-time Pulitzer Prize winner known for his work on foreign affairs, global trade, the Middle East, globalization, and environmental issues.