On February 1, 2016, Jekel & Hyde Inc. purchased land and incurred other costs relative to the construction of a new warehouse. The costs related to the purchase of the land and the construction of the building are listed below: Purchase price of the land $231,250 Title insurance for the land $1,500 Legal fees to purchase land $1,000 Cost of razing an old building on the land to be used $8,500 for the construction of the warehouse Delinquent property taxes on the land owed by the seller $3,000 Cost of grading and filling the portion of the land on which $6,000 the warehouse will be placed. Architect fees $3,000 Building construction: Material $ 352,000 Labor $ 235,000 Insurance during construction $ 22,500 Utilities during construction $ 20,000 Avoidable Interest $ 2,500 Cost of constructing driveway $ 8,000 Cost of parking lot and fencing $12,000 Additional Information: a) To acquire the land at its fair market value and to construct the building, the company issued 25,000 of its $1 par value common stock. The stock is actively traded and its closing price on the date of issuance was $ 9.25 per share. b) Of the acres purchased, 80% of the land would be used for the construction of the warehouse and 20% of the acres would be held for future expansion or sale. c) In addition to the proceeds from the sale of the stock, cash-on-land was used for the balance of related expenditures. d) After 5 years of use, the company decided to dell the warehouse (including the land it was on). It sold for $1,000,000. The warehouse began operations on January 2, 2017. Over the 5 years, it had been depreciated properly, based on 10 yrs of useful life and a residual value of $365,000. The fencing, driveway and parking lot were depreciated based on 10 yrs useful life and no residue value. The company used the straight line method of depreciation. Required: Prepare the journal entries to record the economic events described above. You do not need to journalize the depreciation taken over the 5 yrs, which included the year of the sale.