please show all calculations and do as soon as you can
do it using financial calculator or excel
On January 1, 2020, Monty Corporation erected a drilling platform at a cost of $5,241,600. Monty is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $912,000. Monty 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 $31.035 and $33,517, respectively. The estimated residual value of the drilling platform is zero, and Monty uses straight-line depreciation. Monty prepares financial statements in accordance with IFRS. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. 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, es 1.25124 and final answers to decimal places, eg. 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 entero for the amounts.) Date Account Titles and Explanation Debit Credit Jan 1, 2020 Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2020. (Round answers to decimal places, eg. 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, eg. 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 for the amounts) Account Titles and Explanation Debit Credit Date Dec. 31 2021 (To record depreciation expensel Dec 31, 2021 (To record interest expense) Dec. 31 2021 To record production of inventory 31, 2025, Monty dismantles and removes the platform at a cost of $885,120. Prepare the journal entry to record the settlement of the asset retirement obligation. Also assume its carrying amount at that time is $912,000. (Round answers to decimal places, eg. 5,275. Credit account tities 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2025 On January 1, 2020, Monty Corporation erected a drilling platform at a cost of $5,241.600. Monty is legally required to dismantle and remove the platform at the end of its 6 year useful life at an estimated cost of $912,000. Monty 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 $31,035 and $33.517. respectively. The estimated residual value of the drilling platform is zero, and Monty uses straight-line depreciation. Monty 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, eg. 1.25124 and final answers to decimal placesc.8. 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 entero for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 (To record the cost of drilling platform) Jan 1, 2020 I (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 decimal places, eg. 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 for the amounts.) Account Titles and Explanation Debit Date Dec. 31, 2020 Credit (To record depreciation expense) Dec 31, 2020 (To record interest expense) Dec. 31 Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2021. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not inder manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Date Dec. 31, 2021
