Part B Bruce Manufacturing Ltd’s post-closing trial balance at30 June 2019 included the following balances: Machinery Control (atcost) $244 480 Accumulated Depreciation – Machinery Control 113 800Fixtures (at cost) 308 600 Accumulated Depreciation – Fixtures 134138 The Machinery Control and Accumulated Depreciation – MachineryControl accounts are supported by subsidiary ledgers. Details ofmachines owned at 30 June 2019 are as follows: Machine PurchaseCost Estimated Estimated date useful Life residual value 1 28 Apr2015 $74 600 5 years $3 800 2 04 Feb 2017 $82 400 5 years $4 400 326 Mar 2018 $87 480 6 years $5 400 Additional information ? BruceManufacturing Ltd uses the general journal for all journal entries,records depreciation to the nearest month, balances its accounts6-monthly, and records amounts to the nearest dollar. ? BruceManufacturing Ltd uses straight-line depreciation for machinery anddiminishing balance depreciation at 20% p.a. for fixtures.Thefollowing transactions and events occurred from 1 July 2019onwards: 2019 03 July Exchanged items of fixtures (cost: $100 600;carrying amount at exchange date: $56 872; fair value at exchangedate: $57 140) for a used machine (Machine 4). Machine 4’s fairvalue at exchange date was $58 000. Machine 4 originally cost $92660 and had been depreciated by $31 790 to exchange date in theprevious owner’s accounts. Bruce Manufacturing Ltd estimatedMachine 4’s useful life and residual value at 3 years and $4580. 10Oct Traded in Machine 2 for a new machine (Machine 5), that cost$90 740. A trade-in allowance of $40 200 was received and thebalance was paid in cash. Freight charges of $280 and installationcosts of $1600 were also paid in cash. Bruce Manufacturing Ltdestimated Machine 5’s useful life and residual value at 6 years and$5500. Required A. Prepare journal entries to record the abovetransactions and events. (Narrations are required.)
