Opposite are extracts from the financial reports of Wollowiec Traders Ltd for the years ended 30 June 2016 and 30 June 2017.

	WOLLOWIEC TRADERS ltd Statement of Financial Position (extract) as at 30 June 2016
	NON-CURRENT ASSETS Land Building Less: Accumulated depreciation		$450000 120000			$720000 330000
	TOTAL NON-CURRENT ASSETS							$1050000
	EQUITY Revaluation surplus Capital at 1 July 2015 Add: Profit for year		140000   37000			180000
	Capital at 30 June 2016					177000
	TOTAL EQUITY							$  357000
	WOLLOWIEC TRADERS ltd Statement of Financial Position (extract) as at 30 June 2017
	NON-CURRENT ASSETS Land Building					$630000  280000
	TOTAL NON-CURRENT ASSETS							$910000
	EQUITY Revaluation surplus Capital at 1 July 2016 Add: Profit for year		$177000   20000			90000
	Capital at 30 June 2017					197000
	TOTAL EQUITY							$287000
	WOLLOWIEC TRADERS ltd Income Statement (extract) for the year ended 30 June 2017
	EXPENSES Supplies expense Wages expense Depreciation expense – building Bad debts expense Insurance expense Expense on revaluation of building							$3000 36540 30000 8200 15160   20000
	Total expenses							$112900

Additional information

(a) The revaluation surplus at 30 June 2016 was raised entirely as the result of a previous revaluation increase in relation to the land.

(b) No land or buildings were acquired or disposed of during the year ended 30 June 2017.

(c) A revaluation of the land and buildings was carried out on 30 June 2017 after all adjusting entries had been entered and posted. The revaluation adjustment was entered into the accounts on 30 June 2017, and the statement of financial position at that date reflects the fair values in accordance with the revaluation.

(d) After the revaluation, the building was reassessed to have a residual value of $38000 and a remaining useful life of 15 years. The building is to be depreciated using the straight-line method of depreciation.

(e) The land and buildings were sold on 31 December 2017. A lump sum of $850000 was received. The proceeds were allocated to the land and buildings at $600000 and $250000 respectively. Ignore GST.

Required

A. Calculate the balance of the Accumulated Depreciation – Building account immediately before the revaluation on 30 June 2017.

B. Prepare the general journal entries to record:

    1.   The revaluation of the building on 30 June 2017

    2.   The revaluation of the land on 30 June 2017

    3.   The disposal of the land on 31 December 2017

    4.   The disposal of the building on 31 December 2017.