Question $1(25$ marks$)$

Chi Shing Limited $("$CS$")$ has acquired two properties and details are as follows:

CS has undergone a revaluation assessment and found that the market value of Property Phoenix

was $$3,070,000$ and $$2,240,000$ respectively as at $31$ December $2021$ and $2022.$ The market

value of Property Dragon was $$2,500,000$ and $$1,800,000$ respectively as at $31$ December $2021$

and $2022.$

On $30$ June $2023,$ CS sold Property Phoenix for $$5,000,000.$

On $31$ December $2023,$ CS started to use Property Dragon as its head office. The market value

of Property Dragon on $31$ December $2023$ was $$1,650,000.$

CS provides depreciation for its owner$-$occupied properties on a monthly basis using straight$-$line

method and revalues the properties annually in accordance with HKAS $16$ Property, Plant and

Equipment. Revaluation gain accumulated in revaluation reserve is transferred directly to retained

profits when the property is used or disposed of$.$

CS applies the fair value model of accounting for investment properties in accordance with HKAS

$40$ Investment Property.

Required:

Prepare journal entries to record the above transactions for the years ended $31$ December

$2021,2022$ and $2023.$