Costs Subsequent to Acquisition - As the first auditor of the Newberg Company you discover that the following entries have been made in the property, plant, and equipment account:

Property, Plant, and Equipment
2006
Plant purchased	60,000	2006
Legal fees	700	Depreciation	6,310
Insurance	2,400
2007
Repairs	2,000	2007
Addition to building	10,000	Depreciation	6,879
2008
Repairs	3,000	2008
Insurance	2,800	Machine sold	500
Machine purchased	7,000	Depreciation	7,421

You discover the following additional information:

1. The purchase of the plant included a building and machinery. When the plant was purchased, an appraisal showed that the building was valued at $39,000 and the machinery at $26,000.

2. Depreciation has been recorded each year at 10% of the balance in the account. The 10% was chosen because the property is being depreciated over 10 years for tax purposes. Subsequent investigation indicates that the expected lives at the time of acquisition were: building, 20 years; machinery, 8 years.

3. Each insurance payment was made on January 1 and was for a two-year policy.

4. The machine that was sold in 2008 had an original cost of $800.

5. All purchases and sales of property, plant, and equipment items occurred at the beginning of the year indicated.

Required

Prepare adjusting entries at December 31, 2008 to correct the books assuming they have not been closed for the year.