Complete the relevant extract general ledger accounts on the disposal of machinery for each of the following independent parts. The gain on disposal or loss on disposal account is also to be shown. The balances on 30 June 2022 were machinery $15 000 and accumulated depreciation – machinery $10 000. The machinery was depreciated using the straight line method at a rate of 15% p.a. with a nil residual value. Assume all entries are processed in general journal format.

a On 1 July 2022, machinery was sold on credit for $6600 ($6000 + $600 GST).

b On 31 August 2022, machinery was sold for cash $3300 ($3000 + $300 GST). Prepare a time line as part of your answer.

c On 31 March 2023, machinery was traded in for $8800 ($8000 + $800 GST) on the credit purchase of a new machine; include a time line as part of your answer.