Branson Ltd owns two delivery vehicles (each with a residual

Branson Ltd owns two delivery vehicles (each with a residual value of $5000 and useful life of 4 years) and uses the straight-line method of depreciation. The business closes its accounting records annually on 30 June. The following events and transactions occurred during the first 3 financial years. Ignore GST.


2016–17

July        1


June       1

June       30


Purchased a delivery truck from Mangrove Mountain Motors for $60 000 cash plus stamp duty of $620, and registration and third-

party insurance of $840.

Made minor repairs to the truck for cash at a cost of $420.

Recorded annual depreciation.

2017–18

July        1


June       30


Purchased a delivery van from Northern Motors for cash, $45 000. This van was a used vehicle which was expected to last 4 years 

from the date of purchase. Fitted four new tyres to the van at a cash cost of $1320.

Recorded depreciation on both truck and van.

2018–19

July        1



June       30


Paid $3700 for an overhaul of the motor of the delivery truck. This expenditure is expected to extend the useful life by 1 year. The 

parts replaced in the truck were considered to have a carrying amount of $2000. Installed a two-way radio in the delivery van at a

cost of $1600 to improve efficiency. This expenditure will not increase the useful life.

Recorded depreciation on both truck and van.



Required

Prepare entries (in general journal form) to record the transactions of Branson Ltd as they relate to both vehicles to 30 June 2019.

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