On January $1,2023,$ BLS Ltd$.$ purchased the right to extract oil from proven oil reserves on provincial government land. It paid

$$1,200,000$ for production equipment and debited the "Equipment" account for the purchase price. Operations began on that day, and

the agreement provided for three years of operations $($until December $31,2025),$ at which time it was estimated the oil reserves would

be exhausted. BLS planned to extract the oil evenly over the three$-$year period and therefore decided to depreciate the cost of the

equipment using the straight$-$line method, with no residual or salvage value. Included in the agreement with the government was a

provision that the business would clean up the site at the end of the three years. On the date of purchase, BLS$\text{'}$s engineers and

accountants estimated that the total cost to clean up the site on December $31,2025$ would total $$392,000,$ and the discount rate to be

applied to that future cost would be $8\%.($Note: clean$-$up costs are also being debited to "Equipment"$).$ On December $31,2025,$ a

contractor was paid $$383,600$ to clean up the site, and in January $2026$ the site was closed. BLS$\text{'}$s fiscal year end was December $31,$ and

the company followed ASPE.

Click here to view the factor table.

Click here to view the factor table.

Prepare the required journal entries for each of the following dates, using the expense approach. $($Note: no inventory or sales related

journal entries are required$)$:

January $1,2023$ Use $($a$)$ factor Table A$\mathrm{.}2,($b$)$ a financial calculator, or $($c$)$ Excel function PV$.$

December $31,2023$

December $31,2024$

December $31,2025$

$($Round present value factor calculations to $5$ decimal places, eg$.0\mathrm{.}52750$ and round answers to $0$ decimal places, e$.$g$.5,275.$ 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. Record journal entries in the order presented in the problem.$)$