Bruce Manufacturing Ltd's post-closing trial balance at 30 June 2019 included the following balances:

Machinery Control (at cost)$244 480

Accumulated Depreciation - Machinery Control113 800

Fixtures (at cost)308 600

Accumulated Depreciation - Fixtures134 138

The Machinery Control and Accumulated Depreciation - Machinery Control accounts are supported by subsidiary ledgers. Details of machines owned at 30 June 2019 are as follows:

MachinePurchaseCostEstimatedEstimated

dateuseful Liferesidual value

128 Apr 2015$74 6005 years$3 800

204 Feb 2017$82 4005 years$4 400

326 Mar 2018$87 4806 years$5 400

Additional information

Bruce Manufacturing Ltd uses the general journal for all journal entries, records depreciation to the nearest month, balances its accounts 6-monthly, and records amounts to the nearest dollar.

Bruce Manufacturing Ltd uses straight-line depreciation for machinery and diminishing balance depreciation at 20% p.a. for fixtures.

The following transactions and events occurred from 1 July 2019 onwards:

2019

03 JulyExchanged items of fixtures (cost: $100600; carrying amount at exchange date: $56872; fair value at exchange date: $57140) for a used machine (Machine 4). Machine 4's fair value at exchange date was $58000. Machine 4 originally cost $92660 and had been depreciated by $31790 to exchange date in the previous owner's accounts. Bruce Manufacturing Ltd estimated Machine 4's useful life and residual value at 3 years and $4580.

10 OctTraded in Machine 2 for a new machine (Machine 5), that cost $90740. A trade-in allowance of $40200 was received and the balance was paid in cash. Freight charges of $280 and installation costs of $1600 were also paid in cash. Bruce Manufacturing Ltd estimated Machine 5's useful life and residual value at 6 years and $5500.

Required

A.Prepare journal entries to record the above transactions and events. (Narrations are required.)