Homespun Resources Ltd was incorporated in $20$X$2$ and is a mining operation in northern Alberta. The company is required by the terms of provincial legislation to remediate mine sites when mining is completed. The following events and decisions with respect to operations relate to Homespun's decommissioning obligations: $($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

January $20$X$2$

Commenced mining on Site $1$; expected duration of operations is three years, and site remediation is expected to be $$505,000$ at that time. Decommissioning obligation is recorded. A reasonable interest rate is $7\%.$

Commenced mining on Site $2$; expected duration of operations is five years, and site

remediation is expected to be $$1,250,000$ at that time. Decommissioning obligation is recorded.

$30$ September $20$X$2$

$31$ December $20$X$2$

A reasonable interest rate is $7\%.$ Interest on decommissioning obligation for Site $1$ and Site $2$ is recorded.

$30$ September $20$X$3$

Interest on decommissioning obligation for Site $2$ is recorded, on the anniversary date of the

mine opening.

$31$ December $20$X$3$

Interest on decommissioning obligation for Site $1$ and Site $2$ is recorded.

Site $1$ is now estimated to close in two years' time $($rather than the one remaining year expected$)$ and remediation costs are anticipated to increase by $30\%.$

$30$ September $20$X$4$

Interest on decommissioning obligation for Site $2$ is recorded, on the anniversary date of the mine opening.

Site $2$ is now estimated to close in two years $($rather than the three remaining years expected$)$ and remediation is now estimated at $$925,000.$

$31$ December $20$X$4$

Interest on decommissioning obligation for Site $1$ and Site $2$ is recorded.

Required:

$1.$ Prepare journal entries for the events listed above. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places and final answer to the nearest dollar amount.$)$

$1.$ Record the decommissioning obligation on commencement of mining on Site $1$ expected to continue for three years, and site remediation is expected to be $$505,000.$ A reasonable interest rate is $7\%.$ for $31$ January $20$X$2$

$2.$ Record the decommissioning obligation on commencement of mining on Site $2$ expected to continue for five years, and site remediation is expected to be $$1,250,000.$ A reasonable interest rate is $7\%$ for $30$ September $20$X$2$

$3.$ Record the interest on decommissioning obligation for Site $1$for $31$ December $20$X$2$

$4.$ Record the interest on decommissioning obligation for Site $2$ for $31$ December $20$X$2$

$5.$Record the interest on decommissioning obligation for Site $2$ for $30$ September $20$X$3$

$6.$Record the interest on decommissioning obligation for Site $1$ for $31$ December $20$X$3$

$7.$Record the decommissioning obligation if mining on Site $1$ expected to continue for two years, and site remediation is expected to increase by $30\%$ for $31$ December $20$X$3$

$8.$Record the interest on decommissioning obligation for Site $2$ for $31$ December $20$X$3$

$9.$Record the interest on decommissioning obligation for Site $2$ for $30$ September $20$X$4$

$10.$Record the decommissioning obligation if mining on Site $2$ expected to continue for two years $($rather than the three remaining years expected$),$ and site remediation is now estimated at $$925,000$ for $30$ September $20$X$4$

$11.$Record the interest expense if mining on Site $1$ expected to continue for two years $($rather than the three remaining years expected$),$ and site remediation is now estimated at $$925,000$ for $31$ December $20$X$4$

$12.$Record the interest on decommissioning obligation for Site $2$ for $31$ December $20$X$4$