On 1 July 2005 Hopeful Ltd commenced exploration for tungsten at two sites believed to have potential in northern Australia. During the financial year ended 30 June 2006 the following costs were incurred: The T2 site was found not to be economically viable and was abandoned in the second half of the 2006 financial year. As activities at the T1 site had not yet reached a stage to determine if recoverable reserves existed the firm chose to capitalise the costs at the T1 site for the financial year ended 30 June 2006. In December 2006 it is decided to develop the T1 site as discovered reserves are estimated to be 25,000 tonnes of tungsten. During the first half of 2007 the following costs are incurred at the T1 site: - development costs of $8 million; - purchase of extraction equipment for $2 million. The equipment can be relocated and has a useful life of 10 years and a nil residual value. The firm completed development activities in June 2007 and production commenced on 1 July 2007. In the financial year ended 30 June 2008,5,000 tonnes are extracted with associated production costs of $1 million and 4,000 tonnes are sold at $3,000 per tonne. All pre-production costs, other than the extraction equipment, are considered intangible assets. Required (a) Provide journal entries (round to the nearest \$) to record the transactions and events for the 2008 financial year. Show all calculations. (NB: no marks are awarded for recording entries for other years). (8 mark