DepletionPrepare the following entries using a general journal:1. A coal mine was acquired at a cost of $1,500,000 and estimated to contain6,000,000 tons of ore. No salvage value is expected. During the year, 100,000 tonswere mined and sold. Prepare the journal entry for the year's depletion expense.Page: 1DOC. POST.DATEACCOUNT TITLEDEBIT CREDITNO. REF.20--Dec. 3122332. A silver mine was acquired at a cost of $3,000,000 and estimated to contain 750,000tons of ore. No salvage value is expected. During the year, 125,000 tons were minedand sold. Prepare the journal entry for the year's depletion expense.Page: 1DOC. POST.NO. REF.DATEACCOUNT TITLEDEBITCREDIT20--Dec. 3123300

journal entry for deletion expenses are as follows

Depletion Prepare the following entries using a general journal: 1. A coal mine was acquired at a cost of $1,500,000 and estimated to contain 6,000,000 tons of ore. No salvage value is expected. During the year, 100,000 tons were mined and sold. Prepare the journal entry for the year's depletion expense. Page: 1 DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20-- Dec. 31 2. 2. 3 3

Depletion Prepare the following entries using a general journal: 1. A coal mine was acquired at a cost of $1,500,000 and estimated to contain 6,000,000 tons of ore. No salvage value is expected. During the year, 100,000 tons were mined and sold. Prepare the journal entry for the year's depletion expense. Page: 1 DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20-- Dec. 31 2. 2. 3 3

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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The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 85,978 tons will be recovered. During the first year the company extracted 4,283 tons of ore. The depletion expense is a.$28,910.25 b.$53,500.20 c.$45,126.00 d.$26,651.16
Knowledge Check 01 On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a salvage value of) $1,000 at the end of its useful life in five years. The company uses straight-line depreciation. It has not recorded any adjustments relating to this equipment during the current year. View transaction list View journal entry worksheet Complete the necessary December 31 journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
anvas X XO Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR 4 (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. CR DR Account Date
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Depletion Down Deep Mining Co. acquired mineral rights for $36,000,000. The mineral deposit is estimated at 40,000,000 tons. During the current year, 11,200,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. 2$ per ton b. Determine the amount of depletion expense for the current year. 2$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Journal Entries: Disposition of Plant Assets 1. Discarding an asset. On January 4, shelving units, which had a cost of $6,360 and had accumulated depreciation of $5,790, were discarded. On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,310, was sold for $120. On October 1, a copy machine, which had a cost of $7,740 and had accumulated depreciation of $7,250, was sold for $550. If an amount box does not require an entry, leave it blank. Prepare the entries for the transactions using a general journal. 2. Exchange or trade-in of assets. On December 31, a drill press, which had a cost of $59,990 and had accumulated depreciation of $48,910, was traded in for a new drill press with a fair market value of $74,250. The old drill press and $65,170 in cash were given for the new drill press. On December 31, the old drill press in (a) and $60,430 in cash were given for the new drill press. If an amount box does not require an entry, leave it blank.…
Partial-year depreciation Equipment acquired at a cost of $110,000 has an estimated residual value of $7,000 and an estimated useful life of 10 years. It was placed into service on May 1 of t current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declin balance rate. Round your answers to the nearest dollar. Depreciation $ Incorrect $
Depletion entries Alaska Mining Co. acquired mineral rights for $17,575,000. The mineral deposit is estimated at 92,500,000 tons. During the current year, 13,900,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. LA b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. December 31 00 ******
Depletion Entries Alaska Mining Co. acquired mineral rights for $26,838,000. The mineral deposit is estimated at 149,100,000 tons. During the current year, 22,350,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
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Depletion Entries Backwoods Mining Co. acquired mineral rights for $53,200,000. The mineral deposit is estimated at 19,000,000 tons. During the current year, 2,500,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31
The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 94,508 tons will be recovered. During the first year the company extracted 4,359 tons of ore. The depletion expense is a.$51,961.60 b.$23,966.29 c.$26,459.13 d.$53,643.00