+ Chapter 10 Homework - P3 -/10 Question 1 of 1 Sage Company was incorporated on January 2 2021, but was unable to begin manufacturing activities until July 1, 2021, because new factory facilities were not completed until that date The Land and Buildings account reported the following items during 2021 January 31 $162,500 February 28 9.834 May 1 62.340 4070 May 1 June 1 43.700 Land and buildings Cost of removal of building Partial ment of rew.contruction Legaltees paid Second payment on new construction Insurance premium Special tax assessment Geceeat expenses Final payment on new construction Asset write-up June 1 2280 June 1 4400 June 30 38,392 July 1 31020 December 31 56,105 414642 December 33 (4375 Depreciation 20211 Account balance December 31, 2021 5410.267 The following additional information is to be comidered 1. To acquire and and building the company paid $82.500 cash and 80shares of its cumulative preferred stock par value $100 per shaterval of the stock 5118 pershan E 2 Cestoval of old to $9334 and the dood materia of the building . 5 A 6 5 7 00 9 O 3 R T Y + Chapter 10 Homework - P3 -110 > Question 1 of 1 The following additional information is to be considered. 1. To acquire land and building the company paid $82.500 cash and 800 shares of its BX cumulative preferred stock par value $100 per share. Fair value of the stock is $118 per share. Cost of removal of old buildings amounted to $9,834, and the demolition company retained all materials of the building Legal fees covered the following 2. 3 5640 Cost of organization Examination of title covering purchase of land Legal work in connection with construction contract 1.450 1980 $4,070 5. Insurance premium covered the building for a 2 year term beginning May 1, 2021 The special tax assessment covered street limprovements that are permanent in nature General expenses covered the following for the period from January 2 2021. to June 30, 2021 6. 534 375 President's salary Plant superintendent's salary supervision of new building 4017 $38.392 7 To Because of pineral increase in construction costs after entering into the building contract, the board of directors increased the value of the building 556.106 believing that such an increase was justified to reflect the current market at the time the building was completed, Retained emines was credited for this amount D EN 2 09 5 9 A * - 5 6 7 8 9 R T Y C JOJPJ education.com + Chapter 10 Homework - P3 Question 1 of 1 - / 10 7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $56,106, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount Estimated life of building-50 years Depreciation for 2021-1% of asset value (1% of $437.500, or $4,375) 8 Prepare entries to reflect correct land, bulldings, and depreciation accounts at December 31, 2021. Round answers to o decimal places, 3.5,275 Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Na Account Titles and Explanation Debit Credit 1 Buildings Want per Prepaid Samsul Web Land at 0 09 1 5 - 96 5 ON + 6 8 9