Reference no: EM133004509

Question - Over a 5-year period, Major Parts Ltd completed the following transactions affecting Non-Current assets in its financial years ending 30 June. The company uses straight-line depreciation on all depreciable assets and records depreciation to the nearest month.

2015 Dec 30

2016 Jun 30

Purchased new machinery for a cash price of $467 500. Installation charges of $8 195 and Freight and Insurance expenditure of $3 025 were paid in cash. All of the above amounts were GST inclusive. The machinery was estimated to have a useful life of 6 years and a residual value of $42 500 (excluding GST).

Recorded depreciation expense on the machinery.

2017 Jun 30

Recorded depreciation expense on the machinery.

2018 Jun 30

Recorded depreciation expense on the machinery.

Nov 30 2019

Jun. 30

Completely overhauled the machinery purchased on 30 December 2014, at a cost of $82 500 including GST, after which the useful life was estimated to be 5 remaining years, and the residual value was revised to $25 000 (excluding GST).

Recorded depreciation expense on the machine.

2020 Jun. 30

Recorded depreciation expense on the machine

Required - Prepare journal entries to record all the transactions of Major Parts Ltd. Entries may be rounded to the nearest whole dollar.