On January 1, 2020, Pina Colada Corporation erected a drilling platform at a cost of $5,350,800. Pina Colada is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $931,000. Pina Colada estimates that 70% of the cost of dismantling and removing the platform is caused by acquiring the asset itself, and that the remaining 30% of the cost is caused by using the platform in production. The present value of the increase in asset retirement obligation related to the production of oil in 2020 and 2021 was $31,681 and $34,216, respectively. The estimated residual value of the drilling platform is zero, and Pina Colada uses straight-line depreciation. Pina Colada prepares financial statements in accordance with IFRS. Prepare the journal entries to record the acquisition of the drilling platform, and the asset retirement obligation for the platform, on January 1, 2020. An appropriate interest or discount rate is 8%. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Hint: For a review of present value concepts, see Chapter 3 of Volume 1.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date Jan. 1, 2020 (To record the cost of drilling platform) Jan. 1, 2020 (To recognize the retirement liability) Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2020. (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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date Dec. 31, 2020 (To record depreciation expense) Dec. 31, 2020 (To record interest expense) Dec. 31 (To record production of oil inventory) Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2021. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date Dec. 31, 2021 (To record depreciation expense) Dec. 31, 2021 (To record interest expense) Dec. 31, 2021 (To adjust asset retirement obligation) Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2021, assuming that Pina Colada prepares financial statements in accordance with ASPE. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date Dec. 31, 2021 (To record depreciation expense) Dec. 31, 2021 (To record accretion expense) Dec. 31, 2021 (To adjust asset retirement obligation) Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2021, assuming that Pina Colada prepares financial statements in accordance with ASPE. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date Dec. 31, 2021 (To record depreciation expense) Dec. 31, 2021 (To record accretion expense) Dec. 31, 2021