You are engaged in the audit of the financial statements of Micro Corporation for the year ended December $31,20$X$6.$ The accompanying analyses of the Property, Plant, and Equipment and related accumulated depreciation accounts have been prepared by the chief accountant of the client. You have traced the beginning balances to your prior year$$s audit working papers.

MICRO CORPORATION

Analysis of Property, Plant, and Equipment

and Related Accumulated Depreciation Accounts

Year Ended December $31,20$X$6$

Description Final $12/31/$X$5$ Assets Per Ledger $12/31/$X$6$

Additions Retirements

Land $$440,500$ $$6,200$ $$446,700$

Buildings $132,00023,500155,500$

Machinery and equipment $397,00042,800$ $$30,500409,300$

$$969,500$ $$72,500$ $$30,500$ $$1,011,500$

Description Final $12/31/$X$5$ Accumulated Depreciation Per Ledger $12/31/$X$6$

Additions$*$ Retirements

Buildings $$66,000$ $$5,750$ $$71,750$

Machinery and equipment $178,65041,550220,200$

$$244,650$ $$47,300$ $$291,950$

$*$Depreciation expense for the year.

All plant assets are depreciated on the straight$-$line basis $($no residual value taken into consideration$)$ based on the following estimated service lives: building, $25$ years; all other items, $10$ years. The company$$s policy is to take one half$-$year$$s depreciation on all asset additions and disposals during the year.

Your audit revealed the following information:

The company completed the construction of a wing on the plant building on June $30.$ The service life of the building was not extended by this addition. The lowest construction bid received was $$23,500,$ the amount recorded in the Buildings account. Company personnel constructed the addition at a cost of $$19,600($materials$,$ $$8,700$; labor, $$6,700$; and overhead, $$4,200).$

On August $18,$ $$6,200$ was paid for paving and fencing a portion of land owned by the company and used as a parking lot for employees. The expenditure was charged to the Land account.

The amount shown in the machinery and equipment asset retirement column represents cash received on September $5$ upon disposal of a machine purchased in July $20$X$2$ for $$56,000.$ The chief accountant recorded depreciation expense of $$4,100$ on this machine in $20$X$6.$

Harbor City donated land and a building appraised at $$220,000$ and $$520,000,$ respectively, to Micro Corporation for a plant. On September $1,$ the company began operating the plant. Since no costs were involved, the chief accountant made no entry for the above transaction.

Required:

Prepare the adjusting journal entries that you would propose at December $31,20$X$6,$ to adjust the accounts for the above transactions. Disregard income tax implications. The accounts have not been closed. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round any division. Round your answers to the nearest dollar amount.$)$