Entity A is a listed company. It is a local production company that produces different types of chemical products for different customers. To prepare for the company's development, Entity A planned to acquire additional machines in the year 2017. On 1 July 2017, Entity A purchased a chemical machine from Entity B on credit. The purchase price was $7,840,000 and it will be fully settled on 1 August 2017. A legal and professional fee of $67,893 was paid by a cheque to Entity C in order to ensure the machine can be ready for use on 1 July 2017. The economic life of the machine is 5 years without any residual value. According to the purchase contract, Entity A is required to remove the plant on 30 June 2022. Entity A estimated the dismantling costs of the plant will be $71,000 on the day of removal. Finally, the actual dismantling costs were $83,500 and they were paid by a direct bank transfer to a cleaning company, Entity D on the same date. On 1 July 2022, a recycling company, Entity E, purchased all the machine scraps for $33,370 on credit and agreed to pay in full on 16 July 2022. Entity A always applies to discounts with a rate of 9.12%. The end of the reporting period is 30 June. Entity A adopts the cost model and the straight-line depreciation method for the measurement of the chemical machine.

REQUIRED:

According to relevant accounting standards, prepare journal entries to record the transactions of Entity A between 1 July 2017 and 16 July 2022.

ACCOUNTS FOR INPUT:

| PPE | Bank | Inventory | Revenue | Cost of sales | Payable | Receivable |

| Restoration liability | Interest expense | Interest revenue | Depreciation | Accum. depreciation |

| Loss on disposal | Gain on disposal | Other expense | Other income | Share capital | Retained earnings | No entry |

ANSWERS:

Journal Entries:

Date	Account Name	Debit ($)	Credit ($)	Hints For Sequence
1-Jul-17				-
				Liability. Judge Dr/Cr Side.
				Asset. Judge Dr/Cr Side.
				Removal Liability.
1-Aug-17				-
				-
30-Jun-18				-
				Liability.
30-Jun-18				-
				-
30-Jun-19				-
				-
30-Jun-19				-
				Contra Asset.
30-Jun-20				-
				Liability.
30-Jun-20				-
				-
30-Jun-21				-
				-
30-Jun-21				-
				Contra Asset.
30-Jun-22				-
				Liability.
				-
				-
30-Jun-22				End of Life.
				-
30-Jun-22				Entity D-related.
				Judge Dr/Cr Side.
				Asset.
1-Jul-22				Entity E-related.
				-
16-Jul-22				-
				-