Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is $79.000 Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Land Improvements Cash Debit Credit
Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is $79.000 Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Land Improvements Cash Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its
store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is
$79,000
Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O
for the amounts. List debit entry before credit entry.)
Account Titles and Explanation
Land Improvements
Cash
Debit
Credit
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