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Prepare journal entries to record the depreciation expense

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Question - The following transactions were recorded in the accounts of Jupiter Pty Ltd for the year ended 30 June 2019:

1 July 2019 - Purchased land for $800,000 and buildings for $500,000 in cash. The estimated useful life of buildings was 20 years, with a residual value of nil. Saturn Pty Ltd uses the straight line method to depreciate buildings.

1 Oct 2019 - Purchased machinery at a total cost of $242,000 in cash. The estimated useful life of the machinery was 4 years with an estimated residual value of $18,000. Saturn Pty Ltd uses the straight line method to depreciate machinery.

Required -

a) Prepare the necessary journal entries for the purchase of land, buildings and machinery during the year.

b) Prepare journal entries to record the depreciation expense for the year ended 30 June 2019.

Reference no: EM132794362

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