Page 5 of 13 BUACC3706 Financial Accounting Semester 2 (Teaching Period: 2017), 2020 Question 7 (3 + 2 = 5 marks) Richmond Pty Ltd constructed a Giant Machine and incurred the following costs in doing SO: Amounts paid to employees to build the machine = $120,000 Raw materials consumed in building the machine = $45,000 Manufacturing equipment depreciation attributed to construction of Giant Machine = $25,000 For the above transactions: A. Provide the journal entries that Richmond Pty Ltd would use for the construction of the asset B. Assume that immediately after the journal entries in part A. have been made, new information becomes available that indicates the recoverable amount of the Giant Machine is only $160,000. Provide the adjusting journal entries. Please write your answer in the grey text box provided below