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On January Mitzu Company pays a lumpsum amount of $ for land, Building Building and Land
Improvements Building has no value and will be demolished. Building will be an office and is appraised at $
with a useful life of years and a $ salvage value. Land Improvements is valued at $ and is expected to
last another years with no salvage value. The land is valued at $ The company also incurs the following
additional costs.
Cost to demolish Building
Cost of additional land grading
Cost to construct Building having a useful life of years and a $ salvage value
Cost of new Land Improvements having a year useful life and no salvage value
$
Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January
Journal entry worksheet
Record the cost of the plant assets, paid in cash.
Note: Enter debits before credits.
