Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Asset Mineral rights Equipment Truck View transaction et Date of Purchase Mar. 1/23 Journal entry worksheet < 1 2 3 Record the depreciation on the truck. Date Dec 31, 2023 Mar. 1/23 Mar. 1/23 Copper's year-end is December 31 and it uses the straight-line method for all mining assets including Intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights. Note: Enter debits before credits. Record entry View transaction list Cost $ 62,400 244,800 95,400 General Journal Clear entry Est. Residual se e Journal entry worksheet < 1 2 Record the disposal of the truck. Est. Life 4 yrs 4 yrs 4 yrs Debit Credit 2. Assume the mine was closed on October 31, 2026, and the assets were scrapped. Record the disposal of the assets. View general Journal
Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Asset Mineral rights Equipment Truck View transaction et Date of Purchase Mar. 1/23 Journal entry worksheet < 1 2 3 Record the depreciation on the truck. Date Dec 31, 2023 Mar. 1/23 Mar. 1/23 Copper's year-end is December 31 and it uses the straight-line method for all mining assets including Intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights. Note: Enter debits before credits. Record entry View transaction list Cost $ 62,400 244,800 95,400 General Journal Clear entry Est. Residual se e Journal entry worksheet < 1 2 Record the disposal of the truck. Est. Life 4 yrs 4 yrs 4 yrs Debit Credit 2. Assume the mine was closed on October 31, 2026, and the assets were scrapped. Record the disposal of the assets. View general Journal
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.7AMCP
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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