QUESTION FOUR

$(9$ marks$)$

Yarra Construction Ltd has completed the following transactions during the financial year ended $31$st December $2021.$ The business is registered for GST$.$

$01/01/21$

Purchased a plant for $$150,000$ plus GST in cash. The plant is depreciated using unit$-$of$-$production method. The plant is expected to manufacture $60,000$ units of products during its useful life and has no residual value.

$20/02/21$

Performed routine maintenance work to the plant and paid $$15,000($including GST$).$

$01/07/21$

Purchased office equipment for $$50,000$ plus GST in cash. A transportation cost of $$500($including GST$)$ and an installation cost of $$1500($including GST$)$ was paid on the same day. The office equipment is depreciated using straight$-$line method over its $4$ years' useful life with $$4000$ residual value.

$31/12/21$ During the financial year, the plant acquired on $1$st January $2021$ has manufactured$10,000$ units of products.

Required

Prepare general journal entries and adjusting entries for the transactions above. Write narrations for each journal.