Exercise 8. On July 1, 20X1, Hunt Inc. invested $800,000 in a mine estimated to have 800,000 tons ofore 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 thisyear. Where would the costs of the 20,000 tons of unsold ore be reported?b)Name of AccountDatea)Exercise 9. The following are selected transactions of Franco Company for the current year. Based onthis 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 31Debit Amount Credit Amountb) Show the year end Adjusting Journal Entry if it has been determined that $50,000 of theGoodwill has been impaired this year.May 1- Purchased a patent for $90,000 with an estimated useful life of 5 years and a legal life of 20years.DateDec 31Name of AccountDebit AmountCredit Amountmunications company. What if the

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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) Debit Amount Credit Amount

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) Debit Amount Credit Amount

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 6PA: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one...

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