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Skysong Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not

Skysong Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not completed until that date. The Land and Buildings account reported the following items during 2018. January 31 Land and building $162,500 February 28 Cost of removal of building 9,834 May 1 Partial payment of new construction 62,340 May 1 Legal fees paid 4,070 June 1 Second payment on new construction 43,700 June 1 Insurance premium 2,280 June 1 Special tax assessment 4,400 June 30 General expenses 38,392 July 1 Final payment on new construction 31,020 December 31 Asset write-up 56,106 414,642 December 31 Depreciation-2018 at 1% (4,375 ) December 31, 2018 Account balance $410,267 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 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $118 per share. 2. Cost of removal of old buildings amounted to $9,834, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Cost of organization $640 Examination of title covering purchase of land 1,450 Legal work in connection with construction contract 1,980 $4,070 4. Insurance premium covered the building for a 2-year term beginning May 1, 2018. 5. The special tax assessment covered street improvements that are permanent in nature. 6. General expenses covered the following for the period from January 2, 2018, to June 30, 2018. Presidents salary $34,375 Plant superintendents salary-supervision of new building 4,017 $38,392 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. 8. Estimated life of building-50 years. Depreciation for 2018-1% of asset value (1% of $437,500, or $4,375).

1) Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2018. (Round answers to 0 decimal places, e.g. 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 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1.

2) Show the proper presentation of land, buildings, and depreciation on the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 5,275.) Skysong Company Balance Sheet December 31, 2018 $

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