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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haved Exercise 8-18 Depletion of natural resources LO P3 Montana Mining Co. pays $4,588,980 for an ore deposit containing 1,520,000 tons. The company installs machinery in the mine costing $207,000, which will be abandoned when the ore is completely mined. Montana mines and sells 156,000 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 intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 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 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $3,760,810 for an ore deposit containing 1,411,000 tons. The company installs machinery in the mine costing $183,900, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 187,800 tons of ore during the remaining eight months of 2017. Prepare the December 31, 2017, 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 intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 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
QS 8-13 (Algo) Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of are. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense
Exercise 8-19A (Static) Computing and recording depletion expense LO 8-9 Colorado Mining paid $600.000 to acquire a mine with 40.000 tons of coal reserves. The financial statements model in Required B reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 15.000 tons of coal in year 1 and 18.000 tons in year 2 Required: a. Compute the depletion charge per ton b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model Complete this question by entering your answers in the tabs below. Required A Required 8 Compute the depletion charge per ton person Cesta Required>
Exercise 8-19A (Algo) Computing and recording depletion expense LO 8-9 Colorado Mining paid $555,800 to acquire a mine with 784,000 tons of coal reserves. The horizontal statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 411,600 tons of coal in Year 1 and 352,800 tons in Year 2. Required a. Compute the depletion charge per unit. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. c. Prepare the general journal entries to record the depletion expense for years 1 and 2. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depletion charge per unit. (Round your answer to two decimal places.) Depletion charge per unit
ces Montana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the mine costing $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 187,200 tons of ore during the year. Prepare the December 31 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 intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date General Journal December 31 Depletion expense-Mineral deposit Record entry Accumulated depletion-Mineral deposit Clear entry Debit Credit View general journal
QS 10-13 (Algo) Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $3,500,000. It incurs additional costs of $980,000 to access the mine, which is estimated to hold 2,500,000 tons of ore. 255,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $500,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Exercise 8. On July 1, 20X1, Hunt Inc. invested $800,000 in a mine estimated to have 800,000 tons of ore of uniform grade. The land is expected to be sold for $80,000 after the ore has been extracted. During the last 6 months of 20X1, 100,000 tons of were mined and sold. a) Prepare the Adjusted Journal Entry to record this Deferred Cost at the end of the year. If we assume that only 80,000 of the 100,000 tons mined in 20X1 were actually sold in this year. Where would the costs of the 20,000 tons of unsold ore be reported? b) Name of Account Date a) Exercise 9. The following are selected transactions of Franco Company for the current year. Based on this information, prepare the Adjusted Journal Entries required at the end of the year. Jan 1- Purchased a small company and recorded goodwill of $150,000. a) How did the purchase of this company generate the asset goodwill of $150,000? Dec 31 Debit Amount Credit Amount b) Show the year end Adjusting Journal Entry if it has been determined…
Required information Problem 10-7A (Algo) Natural resources LO P3 (The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Company pays $6,929,280 for land estimated to contain 9,624,000 tons of recoverable ore. It instals and pays for machinery costing $577,440 on July 25. The company removes and sells 496,750 tons of ore during its first five months of operations ending on December 31, Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Problem 10-7A (Algo) Part 1-4 Required: Prepare entries to record the following (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery.
Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.]Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A Part 3 3. Prepare journal entries to record the machine’s disposal under each of the following separate assumptions: Record the sale of the used machine for $15,000 cash. Record the sale of the used machine for $50,000 cash. Record the insurance settlement received of $30,000 resulting from the total destruction of the machine in a fire.
Exerclse 8-14 Ordinary repalrs, extraordinary repalrs, and betterments LO C3 Oki Company pays $250,550 for equipment expected to last four years and have a $30.000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $18.350 cash for a new component that increased the equipment's productivity. 2. Paid $4,588 cash for minor repairs necessary to keep the equipment working well. 3. Paid $11,300 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet A B Record the betterment cost of $18,350 paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal