Acorn Printing Ltd provides printing services to various businesses in Australia. The following transactions relate to the purchase of a new printing machine. Acorn Printing Ltd is registered for GST and the GST rate is 10%.

1 July 2019	The new printing machine was purchased. The printing machine had a recommended retail price of $99,000 (including GST), but Acorn Printing received a trade discount and ultimately bought the printing machine for $88,000 (including GST). The company paid $5,500 (including GST) to have the machine delivered and installed at the companys factory premises. The printing machine was purchased on credit, but the delivery and installation charge were paid in cash. The printing machine is depreciated using the straight-line depreciation method and has an estimated useful life of 8 years with a residual value of $7,000.
1 June 2020	Regular service of the printing machine was performed at a cost of $2,000 (plus GST).
1 July 2021	As Acorn Printing Ltd wants to purchase a high-quality energy efficient printing machine, the management decided to sell the machine for cash $55,000 (plus GST).

REQUIRED:

Prepare general journal entries to record [requirements (a) to (c) below]:

1. All expenditure (i.e., invoice price of the printing machine and all related expenditure) on 1 July 2019 in relation to purchase of the printing machine.
2. The regular service expense on 1 June 2020.
3. The sale of the cutting machine on 1 July 2021.

4. Explain the main difference between costs incurred on a non-current asset that are capitalised as part of the asset cost as opposed to costs that are immediately expensed. Explain the difference in accounting treatment and provide an example of each to illustrate your answer.

Note: Narrations are not required for journal entries.