QUESTION 4 (This question has Two parts- Part A and Part B) Part A Selected accounts and their balances of Newton Ltd as at 31 December 2020 (i.e. the financial year end of 2020) are provided below: ACCOUNT DR CR Admin Expenses $103,510 Allowance for doubtful debts $10,574 Cash at Bank $267,410 Bill payable $16,500 Accounts Receivable $487,600 Additional information (not included in the figures above): i) Newton Ltd purchased a delivery truck on 1 July 2020 for $90,000 by paying $30,000 in cash, with the rest paid for by taking out a 5-year loan of $60,000 at 10% per annum. The company uses straight line method and assumes zero residual value with a useful life of five (5) years when determining the periodic depreciation. No interest or principal repayments have been paid on the loan by the end of the financial year. ii) The company has determined that the allowance for doubtful debts should be adjusted to reflect 4% of accounts receivable at the end of the year. REQUIRED: Ignore GST Based on the additional information above, prepare the journal entries to record all the transactions and events including any balance day adjustments) for Newton Ltd for the year ended 31 December 2020. [Narrations are not required] (6 marks) PARTB Presented below are selected transactions of Carton Ltd for the financial year end 30 June 2021. Sapton Ltd uses the straight-line deprecation method for both machinery and delivery truck depreciation. (Ignore GST) 1) July 1, 2020, discarded a piece of machinery that was purchased on 1 July 2016. The machine cost $65,000. The machine was deprecated on 5-year useful life with a $5,000 residual value. 2) December 31, 2020, sold a delivery truck that was purchased on 1 July 2015. The delivery truck cost $80,000 and had a useful life of 8 years with no residual value. The delivery truck was sold for $35,000 cash. REQUIRED: Journalise all entries required on the above dates, including entries to update depreciation on assets disposal, where applicable