Prepare the necessary Journal entries to account for the transactions below.

The following information has been extracted from the accounting records of W Limited for the reporting period ending 31 March 2022. 2022 $ Advertising expenses 562 150 Bank charges 3 750 Bank overdraft interest 14 590 Sales Dividends received Gain on sale of asset (land) Interest paid on term loan 298 320 Depreciation manufacturing ppe 536 400 Depreciation buildings 75 480 Directors' fees 39? 440 Purchases 3 327 890 Wages and salaries 2 056 750 Auditor's remuneration 223 720 Other expenses 386 750 Income tax expense 47 788 Contributed equity (6 000 000 ordinary shares) Retained earnings 1 April 2021 Revaluation surplus 1 April 2021 Cash 897 360 Trade receivables 2 046 490 annndunmnnme 73600 Trade payables Wages and salaries payable - Dividends payable Provision for audit fee Provision for warranty Deferred tax liability Deferred tax asset 91 860 Income tax paid in advance 285 000 Income tax payable - Inventory 1 April 2021 282 200 Financial asset WLimited 2 312 800 Thnnkmn Land 5 764 880 Buildings 3 774 000 Buildings accumulated depreciation Property, plant and equipment at cost 3 832 300 PPE. accurmlated depreciation Dividends declared 420 000 8 490 000 99 360 228 530 3 990 360 3 825 768 2 227 820 837 700 24 200 270 000 25 000 282 000 209 820 4 068 000 719 160 2 413 800 2021 $ 447 800 3 190 13 130 32.5 440 536 400 75 480 337 800 2 559 900 1 748 400 170 900 441 200 143 352 200 500 1 229 600 73 600 91 860 282200 2 312 800 5 764 880 3 774 000 4 291200 180000 7 050 000 92 500 3 990 360 3 666 260 2 227 820 712 100 24 200 282 000 209 820 159 492 4 068 000 643 680 1 877 400 The following additional information is available: a. Buildings are depreciated on the straight-line basis at 2 per cent per annum. On 1 January 2022, an administration building that originally cost $414 000 (Accumulated depreciation at 31 March 2021 - $40 320) was destroyed by ooding. No adjustment has yet to be made to write off this item. An amount of $300 000 was received from the insurer in full and nal settlement of the insurance claim. This amount has been credited to the \"Other expenses\". Any gains or losses on capital items are not subject to taxation. Depreciation on buildings is not permitted as a deduction for income tax purposes. Ignore any Covid-19 tax requirements. . On the 1 October 2017, We; Limited upgraded all its property, plant and equipment used in its manufacturing process at a cost of $4 291 200 For accounting purposes, W Limited depreciates its manufacturing property, plant and equipment over 8 years with $nil residual value. For income tax purposes the Inland Revenue Department depreciates the manufacturing property, plant and equipment over 6 years with nil residual value. . Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. On 18 July 2022 it was found that a trade debtor owing W; Limited $66 690 at the reporting date had gone insolvent. . The term loan of $4 068 000 is due for repayment in rll on 31 December 2030. The interest rate is xed at 8 percent per annum. The loan is secured by a oating charge over the company's assets. . Included in dividends declared is an amount of $2?0 000 for the reporting period ending 31 March 2022. The directors plan to obtain the approval of shareholders at the annual general meeting for the payment of this dividend. In addition, the directors have provided an amount of $25 000 in respect of auditor's remuneration (audit fee) in respect of the reporting period ending 31 March 2022. Based on the prior years, the directors believe that the audit fees for the 2022 reporting period will amount to $94 000. W Limited's freehold land was revalued by Paige WNZIV, an independent registered valuer on 24 March 2022. This valuation, based on the fair value of the surrounding properties, showed a value on that date of $6 044 600. . The nancial asset comprises 1450 000 shares in W Limited. At 31 March 2022 the fair value of the shares was $2 995 200. In terms of the entity's business model, any changes in fair value of the nancial asset are recognised through other comprehensive income. Any gain on the nancial asset will be subject to taxation on disposal. . Inventory on hand at 31 March 2022 amounted to $246 000. The gain on the sale of the asset arose from the disposal of a portion of the company's land that originally cost $830 000. The land had been acquired on 15 June 2021. As the land was excess to the company's requirements, it was disposed of on 3 February 2022. There are no tax considerations as a result of this adjustment. W Limited warrants its products against defects in materials and workmanship for a period of two years. Based on their previous experience, warranty costs are expected to approximate 4.0 per cent of sales. . Wages and salaries payable at 31 March 2022 amounts to $29 400. Forty per cent of the wages and salary expense must be allocated to cost of sales, and thirty per cent to Distribution expenses. Seventy per cent of director s fees must be allocated to Administration expenses with the balance allocated equally between the two remaining categories. The manufacturing property and equipment depreciation must be allocated to cost of sales. The building depreciation must be split fty per cent cost of sales and thirty per cent administration expenses. Any warranty expenses are charged to cost of sales. m. An examination of the ledger account, 'Other expenses', shows that they comprise the following: 2022 2021 $ $ Accounting fee 82 000 - Bad debts written off 64 800 - Donations 40 000 - Entertainment expenses 19 540 - Fines and penalties 14 500 12 000 Insurance (165 600) 147 200 Motor vehicle expenses administration 23 220 - Motor vehicle expenses sales representatives 63 490 - Warranty expenses 244 800 282 000 M 0f the entertainment expenses $4 540 will be permitted as a deduction for income tax purposes. Donations and nes and penalties are not permitted as a deduction for income tax purposes. Interest is not permitted as a deduction for income tax purposes until paid. 11. The W insurance premium of $134 400 was paid on 1 December 2021. 0. During the course of the audit conducted during April and May 2022, the auditors discovered that sales of $34 000 made to a customer had been debited to trade payables. The directors have decided to continue making an allowance for doubtful debts of 5 per cent of trade receivables at reporting date. The auditors also discovered that an item of manufacturing property, plant and equipment that originally cost $993 600 when it was acquired on 1 October 2017, suffered catastrophic failure caused through incorrect maintenance on 1 April 2021. As this was not the fault of W Limited, the insurance company made an immediate payment of $458 900. This amount was credited to the property, plant and equipment account. p. 0n 1 April 2021, an environmental scientist found that toxic substances were leaching from W Limited's manufacturing premises. Under the Resource Management Act, We; Limited is liable to contain the leaching in specialised tanks. These need to be removed in 10 years and restore the environment to its original condition. The accountant has determined that in 10 years it will cost approximately $500 000 to remove the tanks and restore the environment to its original condition. The discount rate used W Limited 1s 12 per cent. The expenditure will be permitted as a deduction for income tax purposes when it takes place. q. The Inland Revenue Department has agreed that any adjustments that may be necessary as a result of the above transactions can be made in the current income tax year. r. Auditors remuneration includes $28 000 for income tax services, $15 000 for specialised forensic services and $5 720 for travelling and other disbursements. s. On 15 April 2022, the company entered into an agreement to construct a new administration building costing $3 100 000. Construction is expected to commence during September 2022. The issue of new shares and loan nance will nance the construction of the administration building. t. The directors, C. Charles, S. Mall, B. Bailey, C. Irish receive an equal share of the director's fees. In additiOn, three employees earn $115 000 per annum, while one earns $130 000 per annum