Jaensch Ltd reported the following non-current assets at 30 June 2016:

Land Buildings Less: Accumulated Depreciation – Buildings		$42000000   19 400000		$   4 800000 22600000
Equipment Less: Accumulated Depreciation – Equipment		65000000  10000000		55000000
Total non-current assets				$82400000

During the year 2016–17, the following transactions occurred:

Oct. Nov. Dec. Jan. May

1 1 1 1 1

Purchased land for $3500000. Sold equipment that cost $1200000 when purchased on 1 July 2013. The equipment was sold for $700000. Sold land purchased on 30 April 2007 for $3 200000. The land’s original cost was $600000. Purchased equipment for $4000000 cash. Scrapped equipment that had cost $1000000 when purchased on 30 June 2008. No residual value was received.

Required

A: Prepare journal entries to record the transactions. Jaensch Ltd uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value.

B: Record adjusting entries for depreciation for the year ended 30 June 2017.

C: Prepare the non-current assets section of Jaensch Ltd’s statement of financial position as at 30 June 2017.