Leslie Manufacturing Company purchased land adjacent to its factory for the inst

Question

Leslie Manufacturing Company purchased land adjacent to its factory for the installation of a holding area for equipment. Expenditures by the company were as follows: purchase price, $323,500; paving, $5,650; title search and other fees, $1,350; grading, $3,750; demolition of a shack on the property, $5,920; lighting, $8,130; signs, $2,780; broker's fees, $11,370; landscaping, $10,340.

Determine the amount that should be debited to the Land account and record the journal entry assuming that Leslie purchased the land with cash.

Explanation / Answer

total expenditure = 323500+5650+1350+3750+5920+8130+2780+11370+10340 = $372790

amount that should be debited to the Land account and record the journal entry is $372790

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