Bramble Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total $114,000. After extraction has occurred, Bramble must restore the property (estimated fair value of the obligation is $91,200), after which it can be sold for $182,400. Bramble estimates that 4,560 tons of coal can be extracted. If 798 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount
Bramble Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total $114,000. After extraction has occurred, Bramble must restore the property (estimated fair value of the obligation is $91,200), after which it can be sold for $182,400. Bramble estimates that 4,560 tons of coal can be extracted.
If 798 tons are extracted the first year, prepare the
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Account Titles and Explanation
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Debit
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Credit
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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Depletion Expenses:- For the use of Natural Resources, this is an expense that gets charged and recorded in the Income statement as "Expenses".
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