Transaction $1$:

Large Mart has purchased a warehouse from Buy$-$More Ltd$.$ The contract for the purchase was signed on the $1$ April $201$X and Large Mart took possession of the warehouse on that day. One important reason why this warehouse was purchased is that no changes to the property are required. As a result Large Mart starts to use the warehouse on the $1$ April $201$X$.$ For detailed information about purchase contract $($see invoice from Buy$-$More Ltd$)$

Additional information about the purchase of the warehouse:

$$ One week before the purchase was completed, Large Mart received a professional valuation for the land, the building, the shelving in the warehouse and the computer system used for the management of the warehouse. The valuation showed that the fair value of the land was equal to $$600,000,$ that the fair value of the building was equal to $$500,000,$ and that the shelving and the computer system had fair values equal to $$300,000$ and $$150,000,$ respectively.

$$ The company that conducted the valuations has sent invoice for its services $($see invoice from Valuations Made Easy Pty Ltd$).$

$$ Large Mart estimates that the non$-$current assets that were purchased in the transaction outlined above have the following useful lives:

o Warehouse: $30$ years

o Warehouse Shelving: $15$ years

o Computer for Warehouse Management: $3$ years

$$ The Warehouse and the Computer System that were purchased in the outlined transaction are not expected to have any residual values at the end of their useful lives. However, the warehouse shelving is expected to have a residual value of $$5,000$ at the end of its useful life.

Required:

$1.$ Provide all journal entries that are necessary to account for the purchase transaction described above, and remember to include the asset valuations costs in your calculations

$2.$ Prepare a depreciation schedule for all depreciable assets that were purchased in the outlined transaction $($use the depreciation schedule provided in the supporting documents section to complete this task$)$

$3.$ Provide all journal entries that are necessary to account for the depreciation of all depreciable assets that were purchased in the outlined transaction for the month ending $30$ April $201$X$.$

$4.$ Provide all journal entries that are required to account for the payment of invoices that are associated with this transaction.

a$.$ The payment to Valuations Made Easy is made on the $3$ April $201$X

b$.$ The payment to Buy$-$More Ltd is made on the due date provided on the invoice

Transaction $2$:

On the $11$ April $201$X$,$ Large Mart has paid the Australian Subsidiary of an American company called Bpple $$100,000$ for the right to sell Bpple products at the University of New England $($UNE$).$ This agreement states that Bpple will not allow any other shop at UNE to sell Bpple products for the next two years. The agreement is signed on the $11$ April $201$X and Large Mart transfers the required money to Bpple on the same day.

Required:

$1.$ Provide all journal entries that are necessary to account for the purchase and payment of the distribution right for Bpple Products

$2.$ Prepare an amortisation schedule for the purchased distribution right $($use the depreciation schedule provided in the supporting documents section to complete this task$)$

$3.$ Provide all journal entries that are necessary to account for the amortisation of the distribution right for the month ending $30$ April $201$X$.$

Transaction $6$:

On the $1$ May $201$X$,$ Large Mart decides to sell the computer system that was purchased together with the warehouse. The purchaser pays Large Mart a total of $$95,000.$ The sales contract is signed on the $1$ May $201$X and the computer system is picked up by the purchaser on the same day. In addition, the required payis deposited into the bank account of Large Mart on the $1$ May $201$X$.$

Required:

$1.$ Provide all journal entries that are necessary to account for the sale of the computer system $($remember that the computer system is a non$-$current asset$)$

$2.$ Adjust the depreciation schedule to reflect the sale of the computer system

Transaction $7$:

On $1$ May $201$X$,$ Large Mart asks Valuations Made Easy Pty Ltd to determine the fair value of the warehouse and the land on which the warehouse is located. This valuation became necessary because the price of land in Armidale $($where the warehouse is located$)$ has increased substantially during the month of April $201$X$.$

Because Large Mart is a good customer of Valuations Made Easy Pty Ltd$,$ the new valuations are finalised on the same day $(1$ May $201$X$)$ and emailed to the accounting department of Large Mart. The email contains the following information:

To whom this may concern,

Valuations Made Easy Pty Ltd was asked to determine the fair value of the warehouse $($and land$)$ located at $23$ Storage Road, Armidale NSW$.$ After inspecting the warehouse and all associated documentations, we arrived at the following valuations.

$1)$ Land $($located at $23$ Storage Road, Armidale NSW$)=$ $$600,000$

$2)$ Building $($located at $23$ Storage Road, Armidale N