Willy Ltd was formed on 1 July 2023 to provide courier services. On this date, the company acquired a delivery van from Wagtail Vehicles. The company paid cash of $75 000 to Wagtail Vehicles. The van is expected to have a useful life of 5 years and a residual value of $5 000

On 1 August 2025 the van broke down. Willy Ltd decided to repair the van, giving it an overhaul at a cost of $8 000. Although this was a major expense, management believed this would increase the useful life by 3 years. The estimated residual value would be $6 000.

Required

Prepare the journal entries for the van on 1 August 2025.