Record the general journal entries in the template

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Point 1: Mundial Mines Ltd acquired a new sand processing plant on 1st July 2017 for cash at a cost of $125,000. The firm paid in cash additional transportation and insurance costs of $50,000 and an extra $40,000 in cash for a team of experts to construct and test the plant prior to use.

Point 2: The plant is expected to have a useful life of 200,000 cubic meters of sand and have a scrap (residual) value of $50,000. In the first year the plant produced 60,000 cubic meters of sand and in the second year 40,000 cubic meters.

Point 3: Mundial Mines sells the plant for cash on the 1 July 2019 for $151,250.

Required:

Question 1: Record the general journal entries in the template provided below for the purchase, depreciation for years 1 & 2, and the sale of the sand processing plant in the accounts of Mundial Mines Ltd (no narrations/descriptions required, DO NOT consider GST).

Reference no: EM132545228

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