Reference no: EM132979507

Jaensch Ltd reported the following non-current assets at 30 June 2019.

Land $ 4 800 000

Buildings $ 42 000 000

Less: Accumulated Depreciation - Buildings 19 400 000 22 600 000

Equipment 65 000 000

Less: Accumulated Depreciation - Equipment 10 000 000 55 000 000

Total non-current assets $ 82 400 000

During the year 2019-20, the following transactions occurred.

Oct. 1 Purchased land for $3 500 000.

Nov. 1 Sold equipment that cost $1 200 000 when purchased on 1 July 2016. The equipment was sold for $700 000.

Dec. 1 Sold land purchased on 30 April 2007 for $3 200 000. The land's original cost was $600 000.

Jan. 1 Purchased equipment for $4 000 000 cash.

May 1 Scrapped equipment that had cost $1 000 000 when purchased on 30 June 2011. No residual value was received

Required

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

Problem (b) Record adjusting entries for depreciation for the year ended 30 June 2020.

Problem (c) Provide the non-current assets section of Jaensch Ltd's statement of financial position as at 30 June 2020