Rawsons’ Recycling Ltd commenced business on 31 March 2019 in the recycling industry. The company balances its accounting records at month‐end and the end of its reporting period is 31 December. Ignore GST. The following events occurred during 2019 and 2020.

Required

(a) Prepare general journal entries to record the above events.

(b) Prepare the following ledger accounts for the period 31 March 2019 to 31 December 2020:

i. Truck 

ii. Equipment 

iii. Accumulated Depreciation — Truck 

iv. Accumulated Depreciation — Equipment.

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2019 April 1 June 30 31 Aug. Dec. 2020 Paid $140,000 cash for a second-hand disposal truck. Paid $1500 cash to recondition the truck's engine. Paid $12000 cash for equipment. The company estimated the equipment's useful life at 10 years and residual value at $1500. Paid $600 cash for the truck's transmission repairs and oil change. 31 Recorded depreciation on the truck at 40% p.a. on the diminishing balance, and on the equipment using the straight-line method. Mar. 13 July 1 Dec. 31 Paid $600 cash to replace a damaged bumper bar on the truck. Installed a new motor in the truck for a cost of $11000. The company considered that the carrying amount of the old motor was only $600 at this date, and the old motor was written off. With the new motor installed, the truck's depreciation rate using the diminishing-balance method was revised to 30% from 1 July. Recorded depreciation on the truck and on the equipment.