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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 $217,000 for the lot plus $112,000 for the old building. The company pays $43,300 to tear down the old building and $64,009 to fill and level the lot. It also pays a total of $1,662,299 in construction costs-this amount consists of $1,563,600 for the new building and $98,699 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
Land
Building
Land Improvements
Cash
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