Exercise 8-18 Depletlon of natural resources LO P3 Montana Mining Co. pays $4,310,280 for an ore deposit containing 1,590,000 tons. The company installs machinery in the mine costing $173,500, which will be abandoned when the ore is completely mined. Montana mines and sells 185.100 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 Intermedlate calculatlons. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 1 <> 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

Exercise 8-18 Depletlon of natural resources LO P3 Montana Mining Co. pays $4,310,280 for an ore deposit containing 1,590,000 tons. The company installs machinery in the mine costing $173,500, which will be abandoned when the ore is completely mined. Montana mines and sells 185.100 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 Intermedlate calculatlons. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 1 <> 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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