Dove Ltd operates a factory that contains a large number of machines designed to produce knitted garments. These machines are generally depreciated at 10% p.a. on a straight-line basis. In general, machines are estimated to have a residual value on disposal of 10% of cost. At 1 July 2017, Dove Ltd had a total of 64 machines, and the statement of financial position showed a total cost of $445,000 and accumulated depreciation of $138,000. During 201718, the following transactions occurred:

1.	On 1 September 2017, a new machine was acquired for $16,000. This machine replaced two other machines. One of the two replaced machines was acquired on 1 July 2014 for $8,700. It was traded in on the new machine, with Dove Ltd making a cash payment of $9,300 on the new machine. The second replaced machine had cost $9,500 on 1 April 2015 and was sold for $7,700.
2.	On 1 January 2018, a machine that had cost $4,200 on 1 July 2008 was retired from use and sold for scrap for $530.
3.	On 1 January 2018, a machine that had been acquired on 1 January 2015 for $7,400 was repaired because its motor had been damaged from overheating. The motor was replaced at a cost of $5,100. It was expected that this would increase the life of the machine by an extra 2 years.
4.	On 1 April 2018, Dove Ltd fitted a new form of arm to a machine used for putting special designs onto garments. The arm cost $1,300. The machine had been acquired on 1 April 2015 for $10,600. The arm can be used on a number of other machines when required and has a 15-year life. It will not be sold when any particular machine is retired, but retained for use on other machines.

(a)Record each of the transactions. The end of the reporting period is 30 June.(Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account and explanation

Debit

Credit

2017

01/09

Loss on sale of machineryArmDepreciation expenseGain on sale of machineryAccumulated depreciationMachineryCash

MachineryGain on sale of machineryDepreciation expenseCashLoss on sale of machineryAccumulated depreciationArm

(Depreciation on first machine sold)

CashArmLoss on sale of machineryGain on sale of machineryMachineryAccumulated depreciationDepreciation expense

Depreciation expenseLoss on sale of machineryArmAccumulated depreciationMachineryCashGain on sale of machinery

CashDepreciation expenseLoss on sale of machineryArmAccumulated depreciationMachineryGain on sale of machinery

Depreciation expenseLoss on sale of machineryCashAccumulated depreciationArmMachineryGain on sale of machinery

CashLoss on sale of machineryArmGain on sale of machineryDepreciation expenseMachineryAccumulated depreciation

(Trade-in of first machine)

Gain on sale of machineryArmCashMachineryLoss on sale of machineryDepreciation expenseAccumulated depreciation

Gain on sale of machineryMachineryDepreciation expenseLoss on sale of machineryArmAccumulated depreciationCash

(Depreciation on second machine sold)

ArmMachineryDepreciation expenseAccumulated depreciationCashGain on sale of machineryLoss on sale of machinery

Gain on sale of machineryAccumulated depreciationCashMachineryLoss on sale of machineryArmDepreciation expense

Accumulated depreciationCashLoss on sale of machineryGain on sale of machineryMachineryDepreciation expenseArm

Loss on sale of machineryMachineryCashDepreciation expenseGain on sale of machineryArmAccumulated depreciation

(Sale of second machine)

2018

01/01

MachineryCashArmLoss on sale of machineryDepreciation expenseAccumulated depreciationGain on sale of machinery

Gain on sale of machineryArmLoss on sale of machineryMachineryDepreciation expenseAccumulated depreciationCash

(Depreciation on machine sold)

Accumulated depreciationLoss on sale of machineryMachineryDepreciation expenseArmCashGain on sale of machinery

Accumulated depreciationGain on sale of machineryCashDepreciation expenseMachineryLoss on sale of machineryArm

ArmLoss on sale of machineryCashGain on sale of machineryDepreciation expenseAccumulated depreciationMachinery

Gain on sale of machineryDepreciation expenseLoss on sale of machineryAccumulated depreciationArmCashMachinery

(Sale of machine)

01/01

CashDepreciation expenseGain on sale of machineryLoss on sale of machineryArmMachineryAccumulated depreciation

Depreciation expenseLoss on sale of machineryArmAccumulated depreciationCashMachineryGain on sale of machinery

(Depreciation on machine overhauled)

MachineryCashAccumulated depreciationGain on sale of machineryDepreciation expenseLoss on sale of machineryArm

MachineryLoss on sale of machineryArmDepreciation expenseAccumulated depreciationCashGain on sale of machinery

Accumulated depreciationGain on sale of machineryLoss on sale of machineryArmDepreciation expenseMachineryCash

(Adjustment due to overhaul of machine)

01/04

Loss on sale of machineryCashGain on sale of machineryDepreciation expenseMachineryAccumulated depreciationArm

Gain on sale of machineryLoss on sale of machineryArmDepreciation expenseAccumulated depreciationMachineryCash

(Acquisition of equipment)