Acquisitions, disposals, depreciation   LO5, 6, 7 Swan Ltd purchased equipment on 1 July 2018 for $39 800 cash. Transport and installation costs of $4200 were paid on 5 July 2018. Useful life and residual value were estimated to be 10 years and $1800 respectively. Swan Ltd depreciates equipment using the straight‐line method to the nearest month, and reports annually on 30 June. The company tax rate is 30%. In June 2020, changes in technology caused the company to revise the estimated useful life from 10 years to 5 years, and the residual value from $1800 to $1200. This revised estimate was made before recording the depreciation for the reporting period ended 30 June 2020.

(a) On 30 June 2020, the company adopted the revaluation model to account for equipment. An expert valuation was obtained showing that the equipment had a fair value of $30 000 at that date.

(b) On 30 June 2021, depreciation for the year was charged and the equipment’s carrying amount was remeasured to its fair value of $16 000.

(c) On 30 September 2021, the equipment was sold for $8400 cash. Required 1. Prepare general journal entries to record depreciation of the equipment for the years ended 30 June 2019 and 2020. 2. Prepare general journal entries to record the transactions and events for the period 1 July 2019 to 30 September 2021 for items

(a) to (c). (Narrations are not required.) (Show all workings and round amounts to the nearest dollar.)