E 13-2

Sage Company borrowed $32,400on November 1, 2017, by signing a $32,400,8%, 3-month note. Prepare Sages November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

11/1/17

12/31/17

2/1/18

11/1/17

12/31/17

2/1/18

2/1/18

13-2.1

Windsors Drillers erects and places into service an off-shore oil platform on January 1, 2018, at a cost of $10,219,000. Windsor is legally required to dismantle and remove the platform at the end of its useful life in 10 years. Windsor estimates it will cost $1,021,900to dismantle and remove the platform at the end of its useful life in 10 years. (The fair value at January 1, 2018, of the dismantle and removal costs is $459,855.) Prepare the entry to record the asset retirement obligation.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit