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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Exercise 9.11 (Algo) Depletion of Natural Resources (LO9-7) Salter Mining Company purchased the Northern Tier Mine for $88 million cash. The mine was estimated to contain 1.45 million tons of ore and to have a residual value of $1.4 million. During the first year of mining operations at the Northern Tier Mine, 95,000 tons of ore were mined, of which 18,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations.
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Question 20 of 20 0. View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. If a mining company extracts 1540000 tons in a period but only sells 1120000 tons, O a separate accumulated depletion account is set up to record depletion on the 420000 tons extracted but not sold. O depletion is recognized on the 1540000 tons extracted. O total depletion on the mine is based on the 1120000 tons. O depletion is recognized on the 1120000 tons extracted and sold. eTextbook and Media Assistance Used Save for Later Attempts: 1 of 2 used Submit Answer & * 6 7 t y A LO
EX 10-9 Depreciation by two methods OBJ.2 A computer system acquired on January 1 at a cost of $35,000 has an estimated useful life of five years. Assuming that it will have no residual value, determine the depreciation for each of the first two years (a) by the straight-line method and (b) by the double-declining. balance method.
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