Joliet Co. Ltd. was incorporated on January 2, 2018, but was unable to begin manufacturing immediately. The new factory facilities became available for use on July 1, 2018.During the start-up period, the company provisionally used a ??Land and factory building?? account to record the following transactions, in chronological order:

Notes:i. Legal fees of $3,500 covered the following:

Cost of incorporating the company ........................................................... $ 700Examination of title covering purchase of land ......................................  1,300Legal work in connection with construction contract ........................... 1,500

ii. Insurance covered the building for a one-year term beginning April 1, 2018.iii. The special tax assessment covered repaving the street in front of the building.iv. General expenses covered the following for the period January 2, 2018, to June 30, 2018:

President??s salary .........................................................................................  $20,000Plant superintendent covering supervision of new building ..............     4,400

v. The board of directors increased the value of the building by $23,500, believing that such an increase was justified to reflect the current market at the time the building was completed; however, there was no external validation of this higher value. Retained earnings were credited for this amount.vi. Engineers estimate the useful life of the building to be 40 years. The company believes that the declining-balance method at a 5% rate is appropriate. The company??s policy for new PPE is to depreciate the assets according to the time available for use in the fiscal year, rounded to the closest month.

Required:Prepare entries to reflect correct land, factory building, and accumulated depreciation accounts at December 31, 2018.

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Jan. 31 Purchase of land and building $220,000 Feb. 19 Cost of removing existing building 9,000 Маг. 15 Proceeds on sale of scrap material from demolition (3,000) Маг. 15 Partial payment on new construction 50,000 Маг. 15 Legal fees paid (see note i below) 3,500 Аpг. 1 Second payment on new construction 50,000 Jun. 3 Insurance premium (see note ii) 2,700 Jun. 20 Special tax assessment (see note iii) 5,500 Jun. 30 General expenses (see note iv) 24,400 Jul. 3 Final payment on new construction 70,000 Dec. 31 Asset write-up (see note v) 23,500 Subtotal 455,600 Dec. 31 Less depreciation for 2012 (see note vi) (18,224) Account balance $437,376