Sam Sak and Girn (SSG) is a privately-owned construction materials company that supplies the

construction industry in the US. SSG received preliminary permission to operate an open pit gravel site on

the escarpment last year and has cleared the land to expose the limestone deposit. As of June 1, 2020, the

final permits were issued by the local municipality.

The permits include a legal requirement to remediate the site with high quality fill and topsoil when the site

is exhausted in 19 years. SSG estimates that the cost of remediation in 19 years will be $14,000,000. SSG

has a December 31 year end. Their relevant cost of funds is 2% and the firm uses straight line depreciation.

a. Provide the journal entries related to the permits issued by the municipality throughout fiscal 2020.

b. In its first month of operations in June 2020, SSG's new site sold 12,000 tonnes of crushed gravel at

$20 and 1,400 tonnes of clear gravel at $80. HST at 13% was charged on every sale. Provide the

journal entry to record the June sales. Note that all sales were on credit with established customers.

Ignore any cost of sales.