Black Velvet Ltd is a large horse racing operation and needs to acquire more stables.This resulted in the purchase of two stables that were paid for in cashon the 1^stJanuary 20X2.Note that the company's financial year ends on 30^thJune.

Information on the stable purchases are as follows:

Cost Residual Value

Stable Pharlap $240,000 $80,000

StableHyperno $500,000 $180,000

The stables are expected to generate benefits evenly over their useful lives (ie straight line depreciation) and all useful lives were determined to be 10 years at the date of purchase. The stables are measured at fair value using the revaluation model specified in AASB116 Property Plant and Equipment.

At 30^thJune 20X3, the company undertook its first revaluation.Information about the stables at that date are as follows (note that useful lives have been reassessed as at that date):

Fair value Expected useful life Residual Value

Stable Pharlap $200,000 12years $56,000

StableHyperno $465,000 16years $97,000

On 31^stOctober 20X3, Stable Pharlap was sold for $155,000 cash and not replaced.

At 30^thJune 20X4, the remaining stable was revalued to a revised fair value, details of which are as follows:

Fair value Expected useful life Residual Value

Stable Hyperno $400,000 12 years $40,000

Required

Prepare the general journal entries in the records of Black Velvet Ltd to record allthe described events over the period 1^stJanury 20X2 to 30^thJune 20X5 (inclusive), assuming the reporting periods end on 30^thJune.Round numbers to the nearest dollar.