On 1 July 2017, Entity A purchased a property (Land and Building) for $5,000,000. The value of the land and building are $600,000 and $4,400,000 respectively. The expected useful life of the building is 50 years with a residual value of $100,000.

Entity A paid 60% by a cheque on 1 July 2017 and the balance was settled on 1 August 2017 through a bank transfer.

On 30 June 2019, the property was revalued to $7,562,224 (land $980,224 and buildings $6,582,000) with a new estimated residual value of $120,000.

On 30 June 2021, the property was sold to Entity B for $8,600,000. Entity A received 70% on the same date and the balance was settled on 1 August 2021.

Entity A opts for annual transfer of the revaluation reserve.

REQUIRED:

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

ACCOUNTS FOR INPUT:

| Machine | Land | Building | Bank | Payable | Receivable | Retained earnings | Share capital | No entry |

| Other income | Other expense | Interest expense | Interest revenue | Depreciation | Accum. depreciation |

| Restoration liability | Loss on disposal | Gain on disposal | Revaluation surplus | Revaluation deficit |

ANSWERS:

Journal Entries:

Date	Account Name	Debit ($)	Credit ($)	Hints For Sequence
1-Jul-17				Land Account
				-
				Not a Liability Account.
				-
1-Aug-17				-
				-
30-Jun-18				-
				-
30-Jun-19				-
				-
30-Jun-19				-
				An Asset Account.
				Land Account
				-
				-
30-Jun-20				An Expense.
				-
				-
				-
30-Jun-21				An Expense.
				-
				-
				-
30-Jun-21				End of Asset Life.
				-
30-Jun-21				-
				Not a Bank Account.
				P/L item. Judge Dr/Cr. Only enter amount.
				Land Account
				-
30-Jun-21				-
				-
1-Aug-21				-
				-