Question

Flounder Pharmaceuticals purchased land for $160,400 to build its new headquarters. The land has an old building on it. The demolition and removal costs of the old building paid were $20,300 and the recovery of salvaged building materials was $9,700. The cost of clearing, grading and filling is $15,600 and the closing costs are $9,600. Prepare the appropriate journal entry for the land, demolition and other costs assuming the company pays cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

So ution Given data, punchased land 2030D demoli tion and emoval casts 9700 a alvaged bzilding matereds costaf cleanggrading and filling is $ t5 600 Closing coS 9600 Jowanal entay Account Tities Debt Credit Land L6ouo0 Demo ifion and gemoval čogts 20 300 Ctearing ara ding, and Alling, asle S600 Recaveryof selvage bidding materials cash404o0+20200+ 15600' SI86600 To necod purchaged land by Cagh aud pameut ef ottex costs to demolish He bilding