Part B: This part of the assignment is worth a total of three (3) marks (details about the allocation of marks in part b are provided below).

The Marketing Department of Large Mart have launched a new cutting-edge product for sale. The product is an interactive screen which allows customers to present interactively with sound, touch, and animation. To assist the Sales Department achieve ambitious sales target in the new product, Large Mart purchased the following items:

A Mercedes Benz Sprinter Van used to transport interactive screens.

Two collaborative hubs used for demonstration and training.

The Van was purchased on credit on 15th April 201x. The list price of the Van was $95,000 and stamp duty on the purchase was $2,000. Large Mart received the invoice for payment and the Van on 21st April 201X. The invoice from the car dealer was paid on 1 May 201x.

Large Mart expects to use the Van for a period of 8 years. At the end of its useful life, the Van is expected to have a residual value of $3,000. The depreciation method used for the Van is identical to the method that Large Mart is using for other cars (straight line method of depreciation).

On 1st July 201x, the accounting department of Large Mart decides to revalue the Van to its fair value of $104,000.

The collaborative hubs were purchased on credit from Next Office Tech on 1 April 201x and received on the same day accompanied by the invoice and the list price was $12,300. However, because Large Mart purchases all its collaborative hubs from this supplier, Large Mart was able to receive an early payment discount of 3% if the items are paid within seven (7) days of receiving the invoice. The accounts payable department of Large Mart deducts the early payment discount and pays the invoice within five days (5). On unpacking the collaborative hubs, the sales department noticed that one of the collaborative hubs was damaged and returned it to Next Office Tech on 6^th April 201x. On the same day (6 April 201x) Next Office Tech refunded the payment for the collaborative hub that was made on the previous day.

Required:

1) (1.0 marks) Provide all journal entries that are necessary in the books of Large Mart to account for the purchase of the collaborative hubs on 1st April 201x, the payment of the collaborative hubs on 5^th April and the return to the supplier on 6^th April 201x, as well as the return of the funds paid by Large Mart.

2) (0.5 marks) Provide all journal entries that are necessary in the books of Large Mart to account for the purchase of the Mercedes Benz Sprinter Van as well as the payment.

3) (1.5 marks) Provide all journal entries that are necessary in the books of Large Mart to account for the revaluation of the Mercedes Benz Sprinter Van on 1st July 201x AND provide a detailed outline of all required calculations.