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
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text:haved 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
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