Digger Oil and Gas Ltd$.($DOG$),$ a company following ASPE, purchased an oil terminal on June $30,2023.$ The cost of the oil terminal is $$850,000$ and DOG expects to operate this location for nine years. After that time DOG is required by law to dismantle the oil terminal and remove the underground tanks. It is estimated that the cost to remove these tanks will be $$90,000$ at the end of the terminal's useful life. DOG uses straight$-$line depreciation for all its assets and estimates that the residual value of the terminal is zero. The appropriate interest rate to use for DOG is $7\%$ and the company has a December $31$ year end.

Prepare all journal entries related to the oil terminal for $2023\mathrm{.}2.$ July $1,2032,$ DOG pays a demolition and clean$-$up company $$94,500$ to clean up the terminal site.Prepare the journal entry.

Answer rating: 100% (QA)

Here are the journal entries related to the oil terminal for 2023 1 June 30 2023 Purch... View the full answer