Kitty Ltd had the following balances for its equipment and building as at 30 June 2021:

Equipment: $

Model A 22,000

Accumulated depreciation - A (5,500)

Model B 30,000

Accumulated depreciation - B (22,500)

Additional information:

• Both models of equipment had a useful life of 4 years when purchased and no residual value.
• Equipment is depreciated using the straight-line method.
• The company calculates depreciation to the nearest month and the nearest dollar.

The following two events related to equipment occurred during the financial year ending 30 June 2022:

• On 30 September 2021, Model B was sold for $7,000 in cash.
• On 1 January 2022, Model A was overhauled at a cost of $6 250. The overhaul increased the useful life of Model A by 2.5 years and the residual value remained at zero.

Required:

1. Prepare the necessary journal entries for the two events above.

2. Calculate the deprecation that will need to be recorded for Model A on 30 June 2022.