Question: how do you prepare the journal entries for this;

During 2016-2017, Winter Ltd. purchased three types of machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarised in the table below. Please note figures below are GST Inclusive.

MACHINE 1

DATE ACQUIRED: 30/09/2016

INITIAL COST: $39,930

INITIAL SITE PREPARATION COSTS: $1,320

Initial delivery and assembly costs: $990

RESIDUAL VALUE: $9,900

USEFUL LIFE: 8

DEPRECIATION METHOD: Diminishing balance

MACHINE 2

DATE AQUIRED: 1/02/2017

INITIAL COST: $27,500

INITIAL SITE PREPARATION COSTS: (NIL)

Initial delivery and assembly costs: $1,100

RESIDUAL VALUE: $6,600

USEFUL LIFE: 5

DEPRECIATION METHOD: Sum of years' digits

MACHINE 3

DATE AQUIRED: 15/11/2017

INITIAL COST: $57,750

INITIAL SITE PREPARATION COSTS: $770

Initial delivery and assembly costs: $880

RESIDUAL VALUE: $11,550

USEFUL LIFE: 10

DEPRECIATION METHOD: Straight line

The following transactions has taken place since the start of 2018. Relevant figures provided below are GST Inclusive.

2018

Feb. 24

Purchased land and a building worth $159,500, with the intention of tearing down the building and constructing a new office complex. An interest-free loan for $120,000 was taken from another company and the rest was paid in cash, plus an agent's commission of $9,680 and title search fees of $3,025.

May 14

Paid Dan's Demolition Services $10,890 to demolish the building acquired on 24 February and received $750, from sale of materials salvaged from demolishing the old building.

June 30

End of financial year depreciation expenses recorded.

July 3

Singed a contract with Easy Construction Ltd, for construction of a new office complex on the land acquired on 24 February. It is expected to cost around $93,500.

Nov. 25

Paid $1,870 cash for oil changes for the machines. Insurance cost for the machines for the year was $2,000 (GST Exempt).

2019

Mar. 10

Purchased a used machine (number 4) for a recommended price of $53,020, but after careful negotiation it was purchased for $47,190 cash. The machine was treated for rust and was re-painted for $660 and installed for $1,320. The engine was reconditioned for $880 cash, as well as servicing the machine at a cost of $572. During installation, one of the major components was dropped and was repaired at a cash cost of $1,650. The machine is expected to make 50,000 units in total, with a residual value of $3,000.

June 30

End of financial year depreciation expenses recorded.

Machine number 4, due to delay in training new labour was not used

Aug. 20

The construction of the new office complex was completed. The breakdown of the construction costs (all paid in cash) was as follows:

Payment to building contractor, $23,980

building's structure materials, $61,930

planning permit and building approvals, $5,940

excavation costs, $13,200

fees for the design and engineering of the complex, $4,213

The office complex is expected to have a residual value of $8,000 and a useful life of 15 years. The accountant has decided to use straight-line method to calculate the depreciation expenditure.

Nov. 25

Paid $1,870 cash for oil changes for the machines. Insurance cost for the machines for the year was $2,000 (GST Exempt).

2020

Mar. 25

Machine 1 broke down. The management thought about replacing the machine with a new one, but after considering the cost of a new machine, it was decided to perform major repairs on this machine. A new engine was installed for a cost of $25,300, cash. The company expects these repairs to extend the machine's useful life by 2 years and the expected selling price by the end of useful life is estimated to be $1,200. The carrying amount of the parts replaced in the machine was considered to be equal to $12,000.

June 30

End of financial year depreciation expenses recorded. Machine number 4 has produced 12,450 units.

Aug. 11

Due to technological advances the company sold machine 2 for $11,000.

2021

June 30

End of financial year depreciation expenses recorded. Machine number 4 has produced 17,000 units.

Required

• Prepare the necessary general journal entries for all the above transactions (2018-2021), assuming the end of financial year is at 30 June.
• Rounding to the nearest whole number for the amounts to be journalised. Depreciation calculations must be based on the exact dates provided (NO rounding to the nearest month, round to the nearest 2 digit). Narrations are not required. Note, this question information is GST Inclusive.

Instructions: You are required at least, to have a sheet in excel for

• General journal entries
• Workings and calculations (for instance any relevant T accounts and depreciation rate

calculation).

• Depreciation schedules for each depreciable asset (this could be on a separate sheet or part

of the above sheet).