In the preparation of its annual financial reports for 30 June 2024, Walgarra Ltd identified several transactions that needed to be resolved. Ignore GST.

1. On 1 July 2023, Walgarra Ltd purchased a second-hand delivery truck for \($36000\). The cost was debited to the motor vehicle account. Prior to use, the business also purchased 4 new tyres at cost of \($1200\), recorded in the repairs and maintenance account, and paid \($900\) to have the business name sign written on the truck body, recorded as advertising expense. The truck commenced deliveries once the new tyres were installed and the sign writing completed. The delivery vehicle has a useful life of 5 years or 120 000 kms and a residual value of \($4000\). Depreciation is allocated using units of production method based on 22000 km in 2023-2024.

2. Land and a building were purchased on 30 July for \($480\) 000. Appraisal values determined \($280\) 000 should have been allocated to building and \($200\) 000 for land. The full purchase price of \($480\) 000 was recorded in the building ledger account. The building has a useful life of 25 years with a residual value of \($15000\) and is depreciated using the straight-line method.

3. New equipment was purchased on 1 April 2024 at a cost of \($80\) 000. Walgarra Ltd also incurred delivery costs of \($2500\) and installation costs of \($3000\). The delivery and installation costs were recorded amongst operating expenses. The equipment will have a useful life of 6 years, residual value of \($5000\) and will be depreciated using straight-line depreciation.

Required

(a) Prepare journal entries on 30 June 2024 to correct the accounts.

(b) Prepare journal entries as necessary to record depreciation expense after the corrections in requirement(a) have been made.