Alexander Ltd completed the following transactions during 2019. The company uses sum‐of years’‐digits depreciation and records depreciation to the nearest month. Ignore GST.

Required

(a) Prepare general journal entries to record all the transactions of Alexander Ltd.

(b) Prepare an entry to record depreciation expense on 31 December 2019.

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Jan. 5 Mar. 7 Mar. 20 20 Purchased a used machine (No. 1) for $8000 cash. The machine was painted and reconditioned at a cost of $900. During installation, one of the major components was dropped and had to be repaired at a cash cost of $300. The machine is expected to have a useful life of 4 years and a residual value of $500. Purchased land and a building with the intention of tearing down the building and constructing a new office complex. Alexander Ltd paid $140 000 for the property, plus an agent's commission of $8000 and title search fees of $2500. Paid Dan's Demolition Services $9000 to demolish the building acquired on 7 March.