Presented below are selected transactions for Watts Ltd for the year ended 31 December 2016 (reminder: the company has a calendar year end) Jan. 1 Scrapped a truck that was purchased on 1 January, 2005. The truck cost S55 000 on that date, and had a useful life of 10 years with no residual value Sold a printer for $25 000 that was purchased on 1 January, 2013. The printer cost S90 000, and had a useful life of 5 years with no residual value April 30 Sold a machine for $16 000. In year 2011, Watts Ltd paid $33 000 to acquire the machine, which had a useful life of 10 years and a residual value of $3 000. On 31 December 2015, accumulated depreciation on the machine was $15 000 May 31 Sep. 1Purchased a new office equipment on credit at the price of $12 000. The equipment had a useful life of 5 years and residual value of $2 000 Dec. 31 Discarded a business automobile that was purchased on 1 January, 2012. The car cost $20 000 and was depreciated on an 8-year useful life with a residual value of $800 Dec. 31 Recorded depreciation for the new office equipment, purchased on 1 September 2016 (as mentioned above), using the diminishing balance method Ignore GST. Required: Journalise all the above transactions. Please note that except for the new office equipment (purchased on 1 September 2016), Watts Ltd uses the straight-line method of depreciation and has recorded depreciation up to 31 December 2015. Narrations are not required Part B (4 marks) On 1 January 2016, the Guildford Ltd issued $800,000, 8%, 10-year unsecured notes at face value. Interest is to be paid semi-annually on 1 July and 1 January Required: a) Prepare all entries related to the unsecured notes for the year ended 31 December 2016 Narration is not reqired Explain two advantages of debt financing (compared to equity financing) for Guildford Ltd b)