QUESTION 2 | Depreciation and overhauls GST version Branson Ltd owns two delivery vehicles (each with a residual value of $5,000 and useful life of 4 years) and uses the straight-line method of depreciation. The business closes its accounting records annually on 30 June. The following events and transactions occurred during the first 3 financial years. 2019-2020: 1 July 2019 Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt). Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive) Recorded annual depreciation. 1 June 2020 Workings - depreciation on delivery truck Delivery truck: 30 June 2020 2020-2021: Carrying amount prior to improvement 1 July 2020 ($61 460 - $28 230) $33,230 3,700 Purchased a delivery van from Northern Motors for cash, $49,500 (GST Inclusive). This van was a used vehicle which was expected to last 4 years from the date of purchase. Fitted four new tyres to the van at a cash cost of $1,452 (GST Inclusive) Recorded depreciation on both truck and van. Add: Cost of improvement (major overhaul) Less: Cost of parts replaced (2,000) 30 June 2021 Less: Residual value (5,000) 2021-2022: Revised depreciable amount $29,930 1 July 2021 Remaining useful life 3 years Paid $4,070 (GST Inclusive) for an overhaul of the motor of the delivery truck. This expenditure is expected to extend the useful life by 1 year. The parts replaced in the truck were considered to have a carrying amount of $2,000. Installed a two-way radio in the delivery van at a cost of $1,760 (GST Inclusive) to improve efficiency. This expenditure will not increase the useful life. Recorded depreciation on both truck and van. Revised annual depreciation - rounded $9,976.66 or 9,977 30 June 2022 Required Prepare the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022