A Company Needed a New Building

Essay

A company needed a new building.It found a suitable location with an existing old building on the land.The company reached an agreement to buy the land and the building for $960,000 cash.The old building was demolished to make way for the needed new building.Following is information regarding the demolition of the old building and construction of the new one:
Construction cost of new building including $660,000
for parking lot………………………………………. $9,560,000
Demolition of old building…………………………………. 300,000
Proceeds from sale of salvaged materials from old building 120,000
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.