JJP Industries Limited purchased a strip mine for cash on April $1,2023$ at a cost of $$5,861,000.$ JP expects to operate the mine for $10$ years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $$507,000$ to do this at the end of the mine's useful life. The company's year$-$end is December $31,$ and JJP follows ASPE.

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Prepare the journal entry to record the purchase of the mine and to record the asset retirement obligation for the mine on April $1,2023.$ Based on the effective interest rate of $5\%,$ the present value of the asset retirement obligation $($i$.$e$,$ its fair value$)$ on the date of acquisition is $$311,254.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Apr. $1,2023$

$$

$$

$$

$$

$$

$$

Question Part Score

$\frac{-}{3}$

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Prepare any journal entries required for the mine $($straight$-$line depreciation$)$ and the asset retirement obligation at December $31,2023.$ The estimated residual value of the mine is zero. $($Round answers to $0$ decimal places, e$.5.5275.$ Credit account titles are outomatically indented when the amount is entered. Do not indent manually, List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the occount titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31,$

$2023$

$$

$($To record depletion for the year$)$

$($To record depletion for the year$)$

Dec. $31,2023$

$($To record accretion expense for the year$)$

Question Part Score

$-14$

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On April $1,2033,$ J$.$J paid cash to an environmental firm to restore the mine's surrounding area to its original state at a cost of $$517,500.$ Prepare the journal entry for the settlement of the asset retirement. $($Round answers to O decimal places, eg$.5,275.$ Credit occount titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Apr. $1,$

$2033$