QUESTION 3 TOTAL 30 MARKS Black Velvet Ltd is a large horse racing operation and needs to acquire more stables. This resulted in the purchase of two stables that were paid for in cash on the 1st January 20X2. Note that the company's financial year ends on 30th June. Information on the stable purchases are as follows: Cost Residual Value $80,000 Stable Pharlap Stable Hyperno $240,000 $500,000 $180,000 The stables are expected to generate benefits evenly over their useful lives (ie straight line depreciation) and all useful lives were determined to be 10 years at the date of purchase. The stables are measured at fair value using the revaluation model specified in AASB116 Property Plant and Equipment. At 30th June 20X3, the company undertook its first revaluation. Information about the stables at that date are as follows (note that useful lives have been reassessed as at that date): Fair value Expected useful life Residual Value 12 years Stable Pharlap Stable Hyperno $200,000 $465,000 $56,000 $97,000 16 years On 31st October 20X3, Stable Pharlap was sold for $155,000 cash and not replaced. At 30th June 20X4, the remaining stable was revalued to a revised fair value, details of which are as follows: Fair value Expected useful life Residual Value Stable Hyperno $400,000 12 years $40,000 Required 30 marks Prepare the general journal entries in the records of Black Velvet Ltd to record all the described events over the period 1st Janury 20x2 to 30th June 20x5 (inclusive), assuming the reporting periods end on 30th June. Round numbers to the nearest dollar. NOTE In the pages that follow there are two pages of template for your general journal entries. Narrations are not required for the general journal entries. QUESTION 3 (CONTINUED) DATE DR CR [] [] [] [ [] [] [] [] [] [] [] [] [] [] [] [] [] [] [] []