Westeros Energy Inc. (WE) is a public company headquartered in Calgary, Alberta and is focused on oil and gas exploration in Western Canada. On January 1, 2022, WE purchased driting and mineral rightf the Province of Saskatchewan. The rights cost $19,xxx 350 (you can assume they were paid for in cash) and allow the company to drill and extract oil and natural ges in the area for the next seven years unt December 31, 2028. With anticipates that their drilling activity will be spread evenly throughout the seven year agreement. At the end of the term, WEI has one year to clean up and restore the land back to its original state. Company management estimates the rehabilitation efforts will cost $2,760,000 WEI uses a discounted cash flow method to calculate the fair value of the asset retirement obligation and believes that 9% is the appropriate discount rate. They use straight line deprecation under FRS and 10 have a December 31st year-end 12 Required 14 a) Prepare the journal entries to be recorded on January 1, 2022 (5 marks) bl Prepare the journal entries to be recorded on December 31, 2022. Show the amounts and accounts to be reported on the clesfied statement of financial position at December 31, 2022 (6 marks) Prepare the journal entries to be recorded on December 31, 2028. Show the amounts and accounts reported on the classified statement of francial position at December 31, 2028 (4 marks) Provide the amounts on the balance sheet as at December 31, 2022 and December 31, 2008 for the following accounts Drilling rights, net of accumulated depreciation Asset Retirement Obligation (4 marks) Westeros Energy Inc. (WE) is a public company headquartered in Calgary, Alberta and is focused on oil and gas exploration in Western Canada. On January 1, 2022, WE purchased deling and mineral rights from the Province of Saskatchewan. The rights cost $19,000,350 (you can assume they were paid for in cash and allow the company to drill and extract of and natural gas in the arms for the nex December 31, 2028 WEI anticipates that their drilling activity will be spread evenly throughout the seven year agreement. At the end of the term, WE has one year to clean up and resture the land back to original state. Company management estimates the rehabilitation efforts will cost $2,700,000 WE uses a discounted cash flow method to calculate the fair value of the asset retirement obligation and believes that is the appropriate discount rate. They ne straight the deprecation under IFRS and have 10 December 31st year end 12 Required 13 14 15 16 a) Prepare the journal entries to be recorded on lanuary 1, 2022 (5 marks) Prepare the journal entries to be recorded on December 31, 2022. Show the amounts and accounts to be reported on the classified statement of financial position at December 31, 2022 (6 marks) Prepare the journal entries to be recorded on December 31, 2028 Show the amounts and accounts reported on the classified statement of financial petion at December 1 2028 (4 marks) Provide the amounts on the balance sheet as at December 31, 2022 and December 31, 2028 for the following accounts -Drilling rights, net of accumulated depreciation Asset Retirement Obligation 4 marks)