Marlow Metalworks Ltd commenced business on 31 March 2023 in the scrap metal industry. The company balances its accounting records at month-end and the end of its reporting period is 30 June. Ignore GST.

The following events occurred during 2023 to 2025 in relation to accounting for non-current assets:

Required

(a) Prepare journal entries to record the events in the transaction list above.

(b) Prepare the following ledger accounts for the period 1 April 2023 to 30 June 2025:
i. Truck ii. Equipment iii. Accumulated depreciation – truck iv. Accumulated depreciation – equipment

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2023 April 1 May 1 Jun 1 Jun 30 2024 Mar. 13 Dec 27 2025 Jun 30 Paid $140 000 cash for a second-hand truck and paid $1500 cash to recondition the truck's engine. Paid $12 000 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. Recorded depreciation on the truck at 40% p.a. on the diminishing balance, and on the equipment using the straight-line method. Paid $800 cash to replace a damaged bumper bar on the truck. During the Christmas closure, the manager took the opportunity to install a new motor in the truck for a cost of $11 000. The carrying amount of the old motor was valued at $1600 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 January. Recorded depreciation on the truck and on the equipment.