On 2nd January 2016 Gormly limited purchased a machine for $330000 ( net of GST / GST exclusive )the machine had a useful life of five years and a residual value of dollar 30,000 GST exclusive. straight line depreciation is to be used. the machine is to be disposed of on 1st July 2020. Gormly limited balances its account on 31st December the business is registered for GST .

REQUIRED

a ) Prepare journal and journal to record appreciation before the disposal on 1st July 2020

b) The machine and cash of one of dollar 1,40,000 GST exclusive art exchanged photo new machine with the cash price $170,000 GST exclusive. all transactions are shown as GST exclusive. GST is to be announced for the purchase and disposal of the machine including the trade-in allowance exchange

Prepare journal entries to record the disposal of the machine on 1st July 2020

Narration of each journal is required