Solution-Generate the relevant accounting entries for the

Generate the relevant accounting entries for the years

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Reference no: EM133168986

Question - You are preparing the year-end accounts at the year-end 31st December 2018 for Onaapo Oil Limited. You have been told that anticipated Decommissioning Costs for the Comfortable Lead Field is $300 million, and the work will take place in 2025. The company normally applies a 15% discount factor to future cash flows when converting them to a present-day value.

At the end of year 2020, it was realized that costs expected to be incurred to decommission the field would increase to $350 million. At the time of decommissioning the Field by 31st December 2025 the actual cost incurred for decommissioning is $320 million.

As the Accountant for the Company, you are required to generate the relevant accounting entries for the years ending 2018 to 2025. Clearly indicate which entries are for the Income Statement and the Statement of Financial Position (Balance Sheet).

Reference no: EM133168986

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Generate the relevant accounting entries for the years

Reference no: EM133168986

Reference no: EM133168986

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