View Policies Current Attempt in Progress On January 1, 2020, Flint Corporation erected a drilling platform at a cost of $4.968,600. Flint is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $864,500. Flint 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 $29,418 and $31.772, respectively. The estimated residual value of the drilling platform is zero, and Flint uses straight-line depreciation. Flint 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 any journal entries required for the platform and the asset retirement obligation at December 31, 2021. (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 tities and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 (To record depreciation expense) Dec. 31, 2021 (To record interest expense) Dec. 31, 2021 : (To record production of oil inventory) e Textbook and Media Prepare the journal entries to record the acquisition of the drilling platform, and the asset retirement obligation for the platform, on January 1, 2020, assuming that Flint prepares financial statements in accordance with ASPE. An appropriate interest or discount rate is 8%. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 (To record the cost of drilling platform) Jan. 1, 2020 . (To recognize the retirement liability) e Textbook and Media List of Accounts Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2020, assuming that Flint prepares financial statements in accordance with ASPE. (Round answers to 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 . (To record depreciation expense) Dec 31, 2020 . (To record accretion expense) Dec 31, 2020 (To adjust asset retirement obligation) e Textbook and Media Prepare any journal entries required for the platform and the asset retirement obligation at December 31, 2021, assuming that Flint prepares financial statements in accordance with ASPE. (Round answers to decimal places, c.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 enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 (To record depreciation expense) Dec. 31, 2021 . (To record accretion expense) Dec 31, 2021 (To adjust asset retirement obligation) e Textbook and Media Assume that on December 31, 2025, Flint dismantles and removes the platform for a cost of $839,020. Prepare the journal entry to record the settlement of the asset retirement obligation, assuming that Flint prepares financial statements in accordance with ASPE. Also assume its carrying amount at that time is $864,500. (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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2025 + e Textbook and Media List of Accounts Submit Answer Attempts:0 of 3 used Save for Later Last saved 21 hours ago
