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Franklin Wilderness Journeys started operating a cruise and day tour business from Hobart, Tasmania on 1 July 2019. In order to commence the business, the

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Franklin Wilderness Journeys started operating a cruise and day tour business from Hobart, Tasmania on 1 July 2019. In order to commence the business, the company purchased a Naiad vessel in order to conduct the cruises and day tours (details below). The company chooses to use the units of production method of accounting for depreciation. The financial year ends on 30 June. The following events and transactions occurred during the first 3 years of operations. 2019-2020 Jul 1 Purchased the Naiad vessel for $352,000 (GST inclusive). Additional costs associated with the purchase of the vessel were stamp duty of $6,600 (GST exempt) and registration $1,400 (GST exempt). The purchase and additional costs were all paid with cash. The vessel is expected to have a useful life of 600,000 kilometres and a residual value of $55,000. Jul 10 Paid $3,300 (GST inclusive) for signwriting on the vessel. Jun 30 Recorded the annual depreciation. The vessel had travelled 150,000 kilometres by the end of the first year. 20202021 Aug 2 Paid $1,100 (GST inclusive) to replace a damaged navigation aerial on the vessel. Jan 11 Took out an insurance premium on the vessel and paid for the first year at a cost of $1,650 (GST inclusive). Jun 30 Recorded the annual depreciation. The vessel had travelled 310,000 kilometres by the end of year 2 . 20212022 Jul 14 The mechanic discovered an engine problem in the vessel. This required an overhaul of the engine that cost $22,000 (GST inclusive). This overhaul of the vessel is expected to extend the useful life by 400,000 kilometres. Jun 30 Recorded the annual depreciation. The vessel had travelled 450,000 kilometres by the end of year 3. Required: Prepare the general journal entries to record the above transactions. You are not required to complete narrations or posting references, however, you should show workings for depreciation calculations. Franklin Wilderness Journeys started operating a cruise and day tour business from Hobart, Tasmania on 1 July 2019. In order to commence the business, the company purchased a Naiad vessel in order to conduct the cruises and day tours (details below). The company chooses to use the units of production method of accounting for depreciation. The financial year ends on 30 June. The following events and transactions occurred during the first 3 years of operations. 2019-2020 Jul 1 Purchased the Naiad vessel for $352,000 (GST inclusive). Additional costs associated with the purchase of the vessel were stamp duty of $6,600 (GST exempt) and registration $1,400 (GST exempt). The purchase and additional costs were all paid with cash. The vessel is expected to have a useful life of 600,000 kilometres and a residual value of $55,000. Jul 10 Paid $3,300 (GST inclusive) for signwriting on the vessel. Jun 30 Recorded the annual depreciation. The vessel had travelled 150,000 kilometres by the end of the first year. 20202021 Aug 2 Paid $1,100 (GST inclusive) to replace a damaged navigation aerial on the vessel. Jan 11 Took out an insurance premium on the vessel and paid for the first year at a cost of $1,650 (GST inclusive). Jun 30 Recorded the annual depreciation. The vessel had travelled 310,000 kilometres by the end of year 2 . 20212022 Jul 14 The mechanic discovered an engine problem in the vessel. This required an overhaul of the engine that cost $22,000 (GST inclusive). This overhaul of the vessel is expected to extend the useful life by 400,000 kilometres. Jun 30 Recorded the annual depreciation. The vessel had travelled 450,000 kilometres by the end of year 3. Required: Prepare the general journal entries to record the above transactions. You are not required to complete narrations or posting references, however, you should show workings for depreciation calculations

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