Question 1 On 2 January 2019, McGrath Ltd purchased a machine for $36000 with a useful life of 5 years and a residual value of $6000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. In the fourth year (2022), ordinary repairs amounted to $900. On 3 January 2023, McGrath Ltd decided to completely overhaul the machine's major operating parts at a cost of $9600, after which the machine is expected to have a useful life of 4 more years and a revised residual value of $4000. McGrath Ltd uses the straight-line depreciation method. The carrying amount of the parts replaced was considered to be $400. Required Prepare general journal entries to record: a. the purchase of the machine on 2 January 2019 (2 marks) b. the day-to-day repairs on the machine in 2022 (2 marks) c. the overhaul of the machine on 3 January 2023 (4 marks) d. depreciation expense on the machine on 31 December 2023 (2 marks) Question 2 On 1 January 2014 Alex had a motor vehicle with an original cost of $17000 on which depreciation of $6800 had been provided. On 1 April 2014 he bought a new vehicle, costing $24000. He sold the old one and received a cheque for $9400. Alex provides depreciation on motor vehicles at the rate of 40% per annum on the reducing (diminishing) balance basis. He allows a full year's depreciation in the year of purchase and none in the year of disposal. Required Prepare the accumulated depreciation account and motor vehicle disposal account for the year ended 31 December 2014. Balance the account(s) where necessary and bring down the balance(s) on 1 January 2015