1. On 1 July 2018, Johnston Ltd purchased a machine with a list price of $250,000. Freight costs of $5,000 and installation costs of $2,500 were also paid in cash. The machine has a useful life of 4 years and a residual value at the end of its useful life of $25,000. Required: Determine the amount that should be debited to the machinery account and make a general journal entry to record the purchase

Determine the amount of depreciation expense for the year ending 30 June 2019 assuming use of the straight-line depreciation method

Prepare a journal entry to record depreciation expense for the year ending 30 June 2019 under the straight-line depreciation method

2. 4. Powerhouse Ltd purchased machinery on 1 July 2018, at a cost of $800 000. The machinery is depreciated using the straight-line method over a useful life of 8 years with a residual value of $80 000.

Required: Assuming the financial year ends on 30 June, prepare journal entries to record:

the purchase of the machinery on 1 July 2018

depreciation expense for 2019

hi sir, i need the Specific answers to the above 2 questions, many thanks