The accountant recorded the following information in the Land, Buildings and Equipment account for Mickelbury Ltd. The company issued share capital on the 1 April 2024 to purchase property, plant and equipment : (Ignore GST)

Examination of the wage records shows that the salary of the manager, \($6000\) per month, was debited to the Salaries Expense account, from 1 April to 30 September 2024 while the manager supervised the erection of the factory buildings. From 1 October to 31 October 2024 he supervised the installation of the machinery.
The accountant credited sundry income with \($12\) 600, representing \($10\) 500 received for building material scrapped from the demolished building and \($2100\) for the damaged machine.
Required

(a) Show journal entries to transfer the amounts to three different accounts, i.e. Land account, Buildings account and Machinery account.

(b) Assuming that the enterprise started operations on 1 November 2024 and that its financial year ends on 30 June, journalise the following depreciation entries using the straight-line method:
i. buildings: useful life 40 years, \($20\) 000 residual value ii. machinery: useful life 10 years and residual value amounting to 10% of cost.

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Purchase price of land and building (An independent valuation was obtained, showing land being valued at $900 000 and the building at $75 000) Legal and transfer costs Cost of demolition of old building Earthmoving on property Architect's fees and building permits for construction Cost of erection of new building Layout of parking area Lighting of parking area Cost of machinery and equipment (including $13 500 machine dropped and irreparably damaged during installation) Installation cost of machinery Cost of replacement of damaged machine $975 000 5 250 37 500 22 500 240 000 3 150 000 112 500 27 000 1 900 500 127 500 13 500 $6 611 250