On 2 January 2015, Powerhouse Ltd purchased, by exchanging $309,000 cash and a $185,000, 12%, 18-month finance company loan, assets with the following independently determined appraised values:

	Appraised value
Building		$320,000
Land		80,000
Machinery and equipment		100,000
		$500,000

The estimated useful life of the building is 30 years and its residual value is $21,000. The $100,000 machinery and equipment amount consists of three machines independently valued at $30,000 each and some office equipment valued at $10,000. The estimated useful lives and residual values for these assets are:

		Useful life		Residual value
Machine 1		6 years		$3,100
Machine 2		9 years		3,200
Machine 3		4 years		4,200
Office equipment		5 years		500

Powerhouse Ltd uses the straight-line depreciation method. Ignore GST

Prepare journal entries (in general journal form) to record the following.

1. The purchase of the assets.

2. The accrual of interest expense on the loan on 31 December 2015.

3. Depreciation expense for the year 2015.

4. The payment of the loan on 2 July 2016