B Marcovich pays cash for three vehicles on 2 January 2023 for $38 500 ($35 000 + $3500 GST) each.

Motor vehicle 1 will be replaced after five years and has an estimated residual of $2200 ($2000 + $200 GST); straight line depreciation is to be used.

Motor vehicle 2 is not expected to have any worthwhile scrap value and is to be depreciated at 40% p.a. using the diminishing balance method.

Motor vehicle 3 is expected to have a residual value of $2200 ($2000 + $200 GST) and is to be depreciated at 30% p.a.

using the diminishing balance method.

Motor vehicle 2 is sold to Barry’s Motors for $16 500 ($15 000 + $1500 GST) on 30 September 2024 as a trade-in on motor vehicle 4.

Motor vehicle 4 is purchased from Barry’s Motors for $46 200 ($42 000 + $4200 GST) (before trade-in) on 30 September 2024. It is to be depreciated at 20% p.a. using the straight line method and has an estimated residual value of $2200 ($2000 + $200 GST). Payment to Barry’s Motors is made on 31 October 2024.

Prepare:

a depreciation worksheets for each asset to 30 June 2025 b general journals for the balance day adjustments, disposal, purchase and closing entries for the period 1 July 2024 to 30 June 2025 c extract general ledger accounts including accounts payable and disposal accounts to 30 June 2025 d an extract income statement and balance sheet for 30 June 2025.