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2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used.

2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. Whistler Company Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion Feedback V Check My Work Incorrect 3. Assume Whistler's discount rate was 9%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? Whistler Company Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 December 31, 2021
Transcribed Image Text:2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. Whistler Company Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion Feedback V Check My Work Incorrect 3. Assume Whistler's discount rate was 9%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? Whistler Company Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 December 31, 2021
Depletion On January 2, 2019, Whistler Company purchased land for $410,000, from which it is estimated that 370,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $52,000, after which it could be sold for $26,000. During 2019, Whistler mined 75,000 tons and sold 56,000 tons. During 2020, Whistler mined 98,000 tons and sold 99,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 70,000 tons. In 2021, Whistler mined 148,000 tons and sold 142,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income 66,080 Depletion included in inventory 2020 Depletion deducted from income 116.820 Depletion included in inventory 2021 Depletion deducted from income Depletion included in inventory Feedback Check My Work 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. Whistler Company Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion
Transcribed Image Text:Depletion On January 2, 2019, Whistler Company purchased land for $410,000, from which it is estimated that 370,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $52,000, after which it could be sold for $26,000. During 2019, Whistler mined 75,000 tons and sold 56,000 tons. During 2020, Whistler mined 98,000 tons and sold 99,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 70,000 tons. In 2021, Whistler mined 148,000 tons and sold 142,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income 66,080 Depletion included in inventory 2020 Depletion deducted from income 116.820 Depletion included in inventory 2021 Depletion deducted from income Depletion included in inventory Feedback Check My Work 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. Whistler Company Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion
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