Entity A leases construction machinery to local building sub-contractors for many years.

On 1 January 2014, Entity A purchased 20 units of construction road roller. The economic life of the road roller is 5 years. The invoice price was $1,800,000 per unit. They were all delivered to Entity A on 1 April 2014. Installation expense of $50,000 was incurred for installing 20 units of road roller on 1 April 2014. The invoice price and the installation expense were settled on 5 May 2014 and 1 April 2014 respectively. The depreciation policy for the construction road roller is based on the straight-line method with a residual value of $1,500 each.

On 31 March 2016, the construction market has suddenly turned down due to several new government legislation on the construction industry. Therefore, Entity A estimated that each construction road roller would be able to generate $400,000 cash per annum in the remaining years and the scrap value of these 20 units of construction road roller was totally $30,000. The discounting rate was applied as 15.00% per annum. Entity A also estimated that if they were sold to the second-hand market, the value of each construction road roller was $990,000. A disposal cost of $120,000 would be incurred for selling them.

On 31 March 2017, Entity A confirmed that further impairment adjustments were not needed after the impairment review.

On 31 March 2018, the construction market dramatically turned up due to the recent economic boom. Entity A estimated the value in use of a road roller would be $370,000. However, these road rollers could not be sold at that time due to a lack of a buyer.

On 31 March 2019, the scrap value of the road roller was sold as $1,250 each.

REQUIRED:

According to relevant accounting standards, provide all necessary journal entries of Entity A from 1 January 2014 to 31 March 2019.

ACCOUNTS FOR INPUT:

| Road roller | Plant | Machine | Motor van | Land | Building | Inventory | Intangible assets | Bank |

| Payable | Receivable | Retained earnings | Other income | Other expense | Interest expense | Interest revenue |

| Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | Loss on disposal | Gain on disposal |

| Restoration liability | Goodwill | Revaluation surplus | Revaluation deficit | No entry |

ANSWERS:

Journal Entries:

Date	Account Name	Debit ($)	Credit ($)	Hints For Sequence
1-Jan-14				-
				-
1-Apr-14				-
				Judge Dr/Cr Side. Only Input the Amount.
				An Asset.
5-May-14				-
				Judge Dr/Cr Side. Only Input the Amount.
				-
31-Mar-15				-
				-
31-Mar-16				-
				-
31-Mar-16				-
				-
				-
				-
31-Mar-17				-
				-
31-Mar-18				-
31-Mar-18
31-Mar-19
31-Mar-19
				Not an Asset. Judge Dr/Cr Side. Only Input the Amount.
				Judge Dr/Cr Side. Only Input the Amount.