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Sam Ltd began operations on 1 July 2018. During the following year, the Company acquired a tract of freehold land and built a new factory

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Sam Ltd began operations on 1 July 2018. During the following year, the Company acquired a tract of freehold land and built a new factory building. On 31 March 2020, the construction of the factory was completed, the occupation permit was obtained, and the factory was ready. A City opening was held on 18 April 2020, with the local parliamentarian opening the factory. The rst items were ready for sale on 25 April 2020. During this period, the following cash inows and outows occurred: 1. Receipt of loan from bank for land and building acquisition on 1 July 201?. Interest 400000 on the bank loan is 6% . -r annum for a 10 ear tenure 2. Payment of interest on loan ?? 3. Payment to settlement agent for land title search, stamp duties and settlement 10000 fees on land acquisition 4. Pa ment for land 100000 5. Payment to architect for drawings for internal adjustments to the building to be 23000 made before use 5. Payment of arrears in rates on land 5000 1". Cost of refurbishing the lobby to the building to attract customers and make it 2000 more user friendly 8. Pa ment to council fora - a royal of buildin_ construction 12000 '3. Payment to construction contractor for factory building 240000 10. Payment for safety inspection on building 3000 Total {3 to 10} = 400000 The building is depreciated at 10% on a straightline basis. The income tax rate is 30%. At 30 June 2019, information about the assets was as follows: Fair value Expected useful life Per etual At 30 June 2020, information about the assets was as follows: Fair value Expected useful life Per etual Require [showing all workings and justifications}: {a} Prepare the general journal entries to record the cost of acquiring the two assets [i.e. land and building} ofJohanne Ltd for the financial year ended 301une 2019 {b} Prepare any necessary general journal entries to revalue the building for the nancial years ended 30June 2019 and 30 June 2020

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