Exercise 8-18 Depletion of natural resources LO P1, P3On April 2, 2017, Montana Mining Co. pays $3,760,810 for an ore deposit containing 1,411,000 tons. The company installs machinery inthe mine costing $183,900, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore iscompletely mined. Montana begins mining on May 1, 2017, and mines and sells 187,800 tons of ore during the remaining eight monthsof 2017.Prepare the December 31, 2017, entries to record both the ore deposit depletion and the mining machinery depreciation. Miningmachinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your finalanswers to the nearest whole number.)View transaction listJournal entry worksheet2Record the year-end adjusting entry for the depletion expense of ore mine.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31 Journal entry worksheet2Record the year-end adjusting entry for the depreciation expense of themining machinery.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31

Depletion and Depreciation Depletion and depreciation both are the accounting method which allows…

Answered: Exercise 8-18 Depletion of natural…

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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1/1 8/10 8/12 8/25 11/10 (a) Led shows the following entries in its Equipment account for 2023. All amounts are based on historical cost. Balance (b) Purchases of equipment Freight on equipment purchased Installation costs Repairs Your answer is correct Account Titles and Explanation Repairs and Maintenarios Expense Equipment eTextbook and Media List of Accounts Your answer is partially correct Equipment 115.000 Prepare any necessary correcting entries (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no enby is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry) 1.Straight-line 27.000 600 2.300 425 Cost of equipment sold (purchased prior to 6/30 2023) 2. Declining balance (assume twice the straight-line rate) Debit 425 Assuming that depreciation is to be charged for a full year based on the ending balance in the asset account no matter when acquired, calculate the…
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Original Cost POST. ... Accumulated Depreciation for Previous Years DATE DESCRIPTION REF. DEBIT CREDIT ... Book Value, Beginning Year 4 1 20xx ... Salvage Value 2 2. ... Revised Remaining Depreciation Cost 3 ... 4 Revised Useful Life 15 YEARS Revised Depreciation, Total Revised Depreciation, Per Year ...
Post the folowing using T-Accounts
Adjustment for Depreciation Cowley Company just completed its first year of operations. The December 31 equipment account has a balance of $20,000. There is no balance in the Accumulated Depreciation-Equipment account or in the Depreciation Expense account. The accountant estimates the yearly equipment depreciation to be $4,000. Prepare the required adjustment to record the yearly depreciation for equipment. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders Assets Liabilities Equity Revenues Expenses = Net Income 20,000 4,000 Check O Previous A Save Answers
cation.wiley.com/was/u/2/assessment-player/index.html?launchid=224b70b7-1b94-43ae-b336-3b8651474636#/question/3 mapter 10 Question 4 of 7 Jan. 1 Here are selected 2022 transactions of Sarasota Company. June -30 Dec. 31 Date w Question 4 of 7 - Homewor Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $60,300 and had a useful life of 10 years with no salvage value. Sold a computer that was purchased on January 1, 2019. The computer cost $45,000 and had a useful life of 5 years with no salvage value. The computer was sold for $15,100 cash. Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $41,940. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Sarasota Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List…
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Current Attempt in Progress At the end of its first year, the trial balance of Teal Company shows Equipment of $47,200 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $5,900. Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 Post the adjustments to T accounts. Accumulated Depreciation-Equipment Carrying amount Depreciation Expense Indicate the balance sheet presentation of the equipment at December 31. TEAL COMPANY Balance Sheet (partial) $ Debit Credit

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