Homework Solutions  
» Home
  

See All Homework
Questions here

Question Description

 
Posted by: accountinghelp
Price Quoted by Student: $4
Posted On: 2013-05-26 01:01:19
 
Question

Cerner Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant.

 

E10-2 Recording costs of assets. Cerner Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant.

 

E10-2 Cerner Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $225,000 for the lot plus $120,000 for the old building. The company pays $34,500 to tear down the old building and $51,000 to fill and level the lot. It also pays a total of $1,440,000 in construction costs this amount consists of $1,354,500 for the new building and $85,500 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cerner, all of which are paid in cash.


Solutions
Exercise 10-2   Cost of land
Price $4
Attachment 1: E10-2 Cerner Manufacturing.doc
Solution Posted By: Accountinghelp    Posted on: 26-05-2013