PKE Ltd commenced coachiness on 1 July 2023. Property was purchased to construct a manufacturing plant for operations. Once construction was completed, the plant opened and commenced on 1 February 2024. The trainee accountant, unsure how to classify the various transactions for the property, plant and equipment simply recorded all of the transactions in the one property, plant and equipment account. The list below summarises the expenditures and receipts involving this asset (Ignore GST):

Required

(a) To assist in the preparation of the notes to the financial statements for the property, plant and equipment, the accountant has asked you to analyse each of the above transactions and present them in a schedule totalling the columns using the template below. Ignore GST.

(b) Prepare a general journal entry to close the $2 435 940 balance in the Property, Plant and Equipment account and allocate the transactions to their appropriate accounts identified in the schedule prepared in (a).

(c) Prepare an entry to record depreciation expense for the year ending 30 June 2024 on land improvements, building and manufacturing equipment using straight-line depreciation. Useful lives and residual values are presented below:

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1 Cost of real estate purchased: Land 306,180 2 Paid for the demolition of the old building to prepare the site for the new factory. 40,500 3 Paid for taxes in arrears on the property in (1) 18,090 4 Paid fee for title search on property in (1) 1,620 5 Received from sale - salvaged materials from old building (12,420) 6 Paid architect for designing new factory 108,000 7 Paid for a temporary fence around the construction site 62,910 8 9 Partial payment to building contractor Paid excavation costs for the foundation of the new factory. 226,800 607,500 10 Paid for construction of parking spaces and installation of parking area lights 42,390 11 Paid interest on building loan during construction 48,600 12 Made final payment to building contractor 742,500 13 Paid for manufacturing equipment and machinery 226,800 15 14 Paid freight on manufacturing equipment and machinery Paid installation costs of manufacturing equipment and machinery 4,320 7,830 16 Paid for removal of temporary fencing around construction site Received from sale - salvage of temporary fencing materials (excludes GST) 17 18 Paid for repair of manufacturing equipment that was damaged during installation Property, Plant and Equipment account balance 3,510 (1,350) 2,160 2,435,940