Alexander Ltd completed the following transactions during 2016. The company uses sum-of-years’-digits depreciation and records depreciation to the nearest month.

Jan.     5 Mar.    7 Mar.    20 April    10 June     23 Nov.     1

Purchased a used machine (No. 1) for $8000 cash (net of GST). 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, net of GST. 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 $140000 for the property, plus an agent’s commission of $8000 and title search fees of $2500. All costs were net of GST. Paid Dan’s Demolition Services $9000 to demolish the building acquired on 7 March. The cost is net of GST. The company’s parking area was paved at a cost of $28 000 (net of GST). The parking area has a useful life of 8 years with no residual value. Purchased for cash a machine (No. 2) with a list price including GST of $16 500. The seller granted a 4% trade discount. GST is to be deducted.  Transportation and freight charges of $1236 (net of GST) were also paid. The machine’s useful life is estimated to be 5 years and its residual value $1600 (excluding GST). Purchased for $29 000 cash (plus GST) a machine (No. 3) with a useful life of 8 years and a residual value of $1000.

Required

A. Prepare journal entries to record all the transactions of Alexander Ltd.

B. Prepare an entry to record depreciation expense on 31 December 2016.