Quick Smart Dry Cleaners Ltd uses the straight-line method for recording depreciation of its assets. The following is a summary of the non-current assets purchased during the second half of the financial year ending 30 June 2023. Ignore GST

Required

(a) Prepare journal entries to record the purchase of the assets and to record depreciation expense on 30 June 2023 and 2024, the end of the company’s reporting periods.

(b) Prepare an Equipment account (No. 240) and an Accumulated Depreciation-Machinery account (No. 241), and prepare subsidiary property and equipment records for the two assets. Post the journal entries to the general ledger accounts and to the subsidiary property and plant records.

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Jan. 5 Mar. 30 Purchased 4 industrial washing machines costing $4000 each. Due to the bulk purchase, the supplier granted a 5% trade discount. Additional changes incurred included $800 in delivery costs and $1200 in installation costs. The washing machines have a useful life of 5 years and residual value of $500 each. Purchased 3 industrial dryers costing $3500 each. Additional charges included delivery $800 and $900 in installation. The dryers will have a useful life of 5 years and residual value of $750 each.