aved Exercise 8-18 Depletion of natural resources LO P3 Montana Mining Co. pays $4,588,980 for an ore deposit containing 1,520,000 tons. The company installs machinery in the mine costing $207,000, which will be abandoned when the ore is completely mined. Montana mines and sells 156,000 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

aved Exercise 8-18 Depletion of natural resources LO P3 Montana Mining Co. pays $4,588,980 for an ore deposit containing 1,520,000 tons. The company installs machinery in the mine costing $207,000, which will be abandoned when the ore is completely mined. Montana mines and sells 156,000 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

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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Please answer last three requirement, If possible answer all the parts please other answer last 3 parts
406 Part Three Accounting S EXERCISE 11-11 ENTRIES FOR SALE OF PLANT ASSET A piece of equipment acquired on January 3, 1991, at a cost of $57,500, has an esti useful life of 5 years, an estimated residual value of $7,500, and is depreciated straight-line method. Objective 7 a. What was the book value of the equipment at December 31, 1994, the end of the fci year? b. Assuming that the equipment was sold on July 1, 1995, for $9,000, journalize the emác to record (1) depreciation for the six months of the 'curfent year ending December 1995, and (2) the sale of the equipment. WEXERCISE 11-12 DISPOSAL OF PLANT ASSET Objective 7 A piece of equipment acquired on January 3, 1991, at a cost of $25,000, has an estim useful life of 4 years and an estimated residual value of $5,000. a. What was the annual amount of depreciation for the years 1991, 1992, and 1993, usa the straight-line method of depreciation? b. What was the book value of the equipment on January 1, 1994? c. Assuming that the…
Problem 11-18 Making asset age and intercompany comparisons (LO 11-3) Gardenia Co. and Lantana Co. both operate in the same industry. Gardenia began its operations in 20X1 with a $20 million initial investment in plant and equipment with an expected life of 10 years. Lantana's net asset base is also $20 million, but its assets are, on average, 5 years old with 10-year expected useful lives on January 1, 20X1. Lantana replaces 10% of its assets each year at year-end, while Gardenia, having just entered the industry, does not have immediate plans to replace any assets. Per year pre-tax net operating cash flow generated $3 million for Gardenia, and $5 million for Lantana. Inflation is expected to be 2% per year, and each company expects to keep pace by increasing its pre-tax net operating cash flow by 2% per year. The cost of Lantana's planned asset replacements will also increase at 2% per year. (Note: For simplicity, assume that prior to 20X1, the replacement cost of Lantana's assets…
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QS 8-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $66,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
QS 10-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
QS 8-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,600 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
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Exercise 8-10A Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 8-3, 8-4 (The following information applies to the questions displayed below.) Exact Photo Service purchased a new color printer at the beginning of Year 1 for $35,350. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,773,800 pages. Actual print production for the four years was as follows: 554,300 484,000 377,200 387,300 Year 1 Year 2 Year 3 Year 4 Total 1,802,800 The printer was sold at the end of Year 4 for $4,050. Exercise 8-10A Part b b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.) Depreciation Expense Year 1 Year 2 Year 3 Year 4 24 Total accumulated depreciation
PARRISH 8 8-1 ACQUISITIONS OF ASSETS For the following asset plese identify the costs. For any costs that are not included in the asset cost, specify how they would be recorded. Invoice price $90,000 (2/10, n/30) Sales Tax 3,400 Freight to ship to Company 6,000 Transport to factory 1.900 Repair of chip in machine from damage in loading 500 Training of operators 3,600 Lunch for truck drivers in transit 25