REQUIRED A & b

A) Record the Journal entries at the time of sale of the Equitment on 31st March 2021

B) Record the Journal entries at the time of Scrapping of the Motor Vehicle on 1st September 2021

Part B - Disposals (9 Marks) As at 1st July 2020, King Ltd has the following assets: Land $150 000 $ 120 000 Equipment Less Accumulated depreciation 40 000 80 000 Motor Vehicle $ 30,000 Less Accumulated depreciation 6,000 24,000 The Equipment was purchased on 1st July 2015 at a cost of $120,000. The Equipment has a residual value of $40,000 and a useful life of 10 years. On the 31st March 2021 the entity sells the Equipment for $80,000. The Motor Vehicle was purchased on 1st July 2019 at a cost of $30,000 and has a residual value of $6,000 and a useful life of 4 years. On 1st September 2021 the Motor Vehicle is written off and is uninsured. A towing fee of $500 is required to take it to a scrap yard. The balance date of King Ltd is 30th June each year and King Ltd uses the straight line depreciation method. Ignore GST