Jaensch Ltd reported the following non‐current assets at 30 June 2019.

During the year 2019–20, the following transactions occurred.

Required

(a) Prepare journal entries to record the above transactions. Jaensch Ltd uses straight‐line depreciation for buildings and equipment. The buildings are estimated to have a 50‐year life and no residual value. The equipment is estimated to have a 10‐year useful life and no residual value.

(b) Record adjusting entries for depreciation for the year ended 30 June 2020.

(c) Prepare the non‐current assets section of Jaensch Ltd’s statement of financial position as at 30 June 2020.

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Land Buildings $42 000 000 Less: Accumulated Depreciation - Buildings 19 400 000 Equipment 65 000 000 Less: Accumulated Depreciation Equipment Total non-current assets 10 000 000 $ 4800 000 22 600 000 55 000 000 $ 82 400 000