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QUESTIONS Entity Aleases construction machinery to local building sub-contractors for many years. On 1 January 2014. Entity A purchased 20 30 units of construction road

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QUESTIONS Entity Aleases construction machinery to local building sub-contractors for many years. On 1 January 2014. Entity A purchased 20 30 units of construction road roller. The economic life of the road roller is 5 years. The invoice price was $1,850,000 per unit. They were all delivered to Entity A on 1 April 2014. Installation expense of $150,000 was incurred for installing 30 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 $2.500 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 $450,000 cash per annum in the remaining years and the scrap value of these 30 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 $375,000. 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 $2.250 each. The end of the reporting period is 31 March REQUIRED: According to relevant accounting standards, provide all necessary journal entries of Entity Afrom 1 January 2014 to 31 March 2019. ACCOUNTS FOR INPUT Road roller i 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 Impairmont loss | Reversal of impairment loss | Loss on disposal Gain on disposal Restoration liability Goodwill evaluation surplus | Revaluation deficit No entry ANSWERS: Journal Entries: Date Account Name Debit() Credit () Hints For Sequence 1-Jan-14 Road roller 55600000 55500000 1-Apr-14 Judge DriCr Side. Only Input Amount An Asset 5-May-14 Judge DriCr Side. Only Input 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 Amount Judge Dr/Cr Side. Only Input Amount

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