1. On February 1, 2021, the Xilon Corporation issued 52,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilons common stock had a fair value of $15 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $7,300,000. Xilon paid $4,650,000 in cash and the remainder was paid by the city of Monrovia.

Prepare the journal entries to record the acquisition of the land and the building. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the acquisition of land in exchange for common stock.
• Record the acquisition of a building through purchase and donation.

2. Oaktree Company purchased new equipment and made the following expenditures:

Purchase price	$	54,000
Sales tax		3,100
Freight charges for shipment of equipment		790
Insurance on the equipment for the first year		990
Installation of equipment		1,900

The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.

Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the purchase of equipment.
• Record any expenditures not capitalized in the purchase of equipment.