QUESTION TWO

Tall Timber Ltd has a financial year end of 30 June. The following are transactions related to an excavator it purchased:

2014 July 1	Purchased a new Excavator. The machine had a recommended retail price of $72,000 (plus GST), but after careful negotiation it was purchased for $58,000 (plus GST). The delivery of the machine cost $4,400 (including GST) and $5,500 (including GST) was paid for installation. The machine, the delivery and the installation charges were all paid in cash. The straight-line method of depreciation will be used for this new Excavator. It has an estimated useful life of 10 years with a residual value of $7,000.
2015 June 3	Maintenance costs of $450 (plus GST) for the Excavator were paid in cash.
2016 July 1	The management decided to revalue the Excavator upward to $65, 000 to reflect its fair value. No change to the useful life or the residual value of the Excavator.
2019 June 30	The management decided to sell the Excavator for $40,000 (plus GST) cash as they wanted to change their production process.

REQUIRED:

Prepare necessary general journal entries to record the following transactions. (Narrations are not required)

1. a) The purchase of the Excavator on July 1, 2014.

2. b) Paid maintenance cost on 3 June 2015

3. c) The depreciation charge for the reporting period ended 30 June 2015

4. d) The revaluation of the Excavator on 1 July 2016

5. e) The sale of Excavator on 30 June 2019