QUESTION $4$

Entity A is a leading company in the construction industry in Hong Kong. It leased construction excavator trucks to local building

sub$-$contractors for more than five decades.

On $1$ January $2019,$ Entity A purchased $48$ units of construction excavator trucks. The economic life of the excavator truck is $5$

years. The invoice price was $$2,350,000$ per unit. They were all delivered to Entity A on $1$ April $2019.$ An installation expense of

$$180,000$ was incurred for installing $48$ units of excavator truck on $1$ April $2019.$ The invoice price and the installation expense

were settled on $5$ May $2019$ and $1$ April $2019$ respectively.

On $31$ March $2021,$ the construction market was suddenly turned down due to several new government legislation on the

construction industry. Therefore, Entity A estimated that each construction excavator truck would be able to generate $$450,000$

cash per annum in the remaining years and the scrap value of these $48$ units of construction excavator truck was a total of

$$30,000.$ Entity A also estimated that if they were sold to the second$-$hand market, the value of each construction excavator truck

would be $$990,000.$ A disposal cost of $$120,000$ would be incurred for selling them.

On $31$ March $2022,$ Entity A confirmed that further impairment adjustments were not needed after the impairment review.

On $31$ March $2023,$ the construction market dramatically turned up due to the recent economic boom. Entity A estimated the value

of the use of an excavator truck would be $$375,000.$ However, these excavator trucks could not be sold at that time due to a lack

of a buyer.

On $31$ March $2024,$ the scrap value of the excavator truck was sold at $$12,880$ each.

The end of the reporting period is $31$ March. The discounting rate was applied as $15\mathrm{.}00\%$ per annum. The depreciation policy for

the construction excavator truck is based on the straight$-$line method with a residual value of $$3,500$ each.

REQUIRED:

According to relevant accounting standards, provide all necessary journal entries of Entity A from $1$ January $2019$ to $31$ March $2024$

ACCOUNTS FOR INPUT:

$|1-$Jan$-2019|1-$Apr$-2019|5-$May$-2019|31-$Mar$-2020|31-$Mar$-2021|31-$Mar$-2022|31-$Mar$-2023|31-$Mar$-2024|$

$|$ Excavator truck $|$ 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 $|$