Spitfire Company was incorporated on January 2, 2011, but was unable to begin manufacturing activities until July 1, 2011, because new factory facilities were not completed until that date. The Land and Building account reported the following items during 2011. January 31 Land and building $160,000 February 28 Cost of removal of building 9,800 May 1 Partial payment of new construction 60,000 May 1 Legal fees paid 3,770 June 1 Second payment on new construction 40,000 June 1 Insurance premium 2,280 June 1 Special tax assessment 4,000 June 30 General expenses 36,300 July 1 Final payment on new construction 30,000 December 31 Asset write-up 53,800 399,950 December 31 Depreciation-2011 at 1% 4,000 December 31, 2011 Account balance $395,950 The following additional information is to be considered. 1.)To acquire land and building the company paid $80,000 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair market value of the stock is $117 per share. 2.) Cost of removal of old buildings amounted to $9,800, and the demolition company retained all materials of the building. 3.) Legal fees covered the following. Cost of organization $ 610 Examination of title covering purchase of land 1,300 Legal work in connection with construction contract 1,860 $3,770 4.) Insurance premium covered the building for a 2-year term beginning May 1, 2011. 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, 2011, to June 30, 2011. President's salary $32,100 Plant superintendent covering supervision of new building 4,200 $36,300 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 $53,800, 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 - 100 years. Depreciation for 2011 - 1% of asset value (1% of $400,000, or $4,000). Prepare entries to reflect correct land, building, and depreciation accounts at December 31, 2011. (Round amount for accumulated depreciation to 0 decimal places, e.g. 2,530. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit Land ___________ Building ___________ Insurance Expense ___________ Pre-paid Insurance ___________ Organization expense ___________ Retained Earnings ___________ Salary Expense ___________ Land and Building __________ Additional paid-in Capital __________ Land and Building __________ Deprecitation Expense __________ Accumulated Depreciation __________ (show the proper presentation of land, building, and depreciation on the balance sheet December 31, 2011) Plant, Property and Equipment Land __________ Building __________ Less: Accumulated Depreciation __________ ___________ Total ___________