Question 4 10 F On 2 January 2015, Gormly Ltd purchased a machine for $330,00 (net of GST/ GST exclusive). The machine had a useful life of 5 yea and a residual value of $30,000. Straight-line depreciation is used The machine is to be disposed of on 1 July 2019. Gormly Ltd balances its accounts on 31 December. The business is registered for GST. Required: (a) Prepare the journal entry to record depreciation before the disposal on 1 July 2019. (4 marks) (b) The machine was destroyed by fire and a cheque/ (cash) of $20,000 was received from the insurance company. Prepare jour entries to record the disposal of the machine on 1 July 2019. (6 marks) Narration (explanation) of each journal is required. HTML Edita iii BI U A IK E 1 12pt V