View the step-by-step solution to: cerner manufacturing purchases a large lot on which an old

This question was answered on May 08, 2012. View the Answer
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 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 th enew 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.
Sign up to view the entire interaction

Top Answer

Dear Student Please find... View the full answer


Journal Entry in the books of Cerner Manufacturing
Land Improvements
(Construction of building.) Debit Credit $1,699,500.00

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • 890,990,898

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • 890,990,898


    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards