A company pays $881,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,600 cash to access the mine, which is estimated to hold 116,000 tons of iron. The estimated value of the land after the iron is removed is $23,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 24,800 tons of iron are mined but only 21,200 tons are sold this first year. View transaction list Journal entry worksheet < 1 2 Prepare the January 1 entry to record the cost of the iron mine. >
A company pays $881,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,600 cash to access the mine, which is estimated to hold 116,000 tons of iron. The estimated value of the land after the iron is removed is $23,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 24,800 tons of iron are mined but only 21,200 tons are sold this first year. View transaction list Journal entry worksheet < 1 2 Prepare the January 1 entry to record the cost of the iron mine. >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mn1.
Transcribed Image Text:A company pays $881,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,600 cash to
access the mine, which is estimated to hold 116,000 tons of iron. The estimated value of the land after the iron is removed is $23,200.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Prepare the January 1 entry to record the cost of the iron mine.
2. Prepare the December 31 year-end adjusting entry if 24,800 tons of iron are mined but only 21,200 tons are sold this first year.
View transaction list
Journal entry worksheet
<
1 2
Prepare the January 1 entry to record the cost of the iron mine.
Note: Enter debits before credits.
Date
General Journal
Debit Credit
>
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