Prepare any journal entries required for the depot and the environmental liability at December 31, 2022. Ayayai uses straight line depreciation, the estimated residual value for the depot is zero, (Round answers to decimal places, eg 5,275, if no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit scember 2022 Depreciation Expense 588000 Accumulated Depreciation Depot 588000 (To record depreciation for the depot) ecember -2022 Depreciation Expense 38306 38306 Accumulated Depreciation Depot (To record depreciation on environmental liability) 2298 scember 2022 Interest Expense I! 2290 Environmental Liability (To record interest on environmental liability) Current Attempt in Progress Ayayal Company purchases an oil tanker depot on January 1, 2022, at a cost of $588.000. Ayayai expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $68.600 to dismantle the depot and remove the tanks at the end of the depot's useful life Your answer is correct Prepare the journal entries to record the depot and the environmental liability for the depot on January 1.2022. Based on an effective interest rate of the fair value of the environmental liability on January 1, 2022. in $38 306. Of no entry is required. select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically Indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit January 1.2022 Depot 588000 Cash 588000 (To record the depot) 38306 January 1.2022 Depot 3830 Environmental Liability (To record the environmental ability) e Textbook and Media Prepare any journal entries required for the depot and the environmental liability at December 31, 2022. Ayayal uses straight- tine depreciation, the estimated residual value for the depot is zero. (Round answers to decimal places, es 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit December Depreciation Expense 588000 31.2022 Accumulated Depreciation Depot 50000 (To record depreciation for the depot) December 31.2022 38306 Depreciation Expense 38306 Accumulated Depreciation-Depot (To record depreciation on environmental liability) 2298 December 31.2022 Interest Expense 2290 Environmental Liability (To record interest on environmental liability)
