Exercise One On July 1, 2022, Phillips Inc. Invested $480,000 in a mine estimated to have 800,000 tonnes of ore. At the end of production at the mine, the company estimates it will have to spend $150,000 to restore the site to an environmentally acceptable condition. The property will then be sold for $90,000. During the last six months of 2022, 100,000 tonnes of ore were mined and sold. Amortizable Cost per Unit: Amount of Amortization Allocated: Amount to be allocated to the restoration liability: a) Prepare the journal entry to record the depletion expense. Date Particulars Debit Credit
Exercise One On July 1, 2022, Phillips Inc. Invested $480,000 in a mine estimated to have 800,000 tonnes of ore. At the end of production at the mine, the company estimates it will have to spend $150,000 to restore the site to an environmentally acceptable condition. The property will then be sold for $90,000. During the last six months of 2022, 100,000 tonnes of ore were mined and sold. Amortizable Cost per Unit: Amount of Amortization Allocated: Amount to be allocated to the restoration liability: a) Prepare the journal entry to record the depletion expense. Date Particulars Debit Credit
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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![Exercise One
On July 1, 2022, Phillips Inc. Invested $480,000 in a mine estimated to have 800,000 tonnes of ore.
At the end of production at the mine, the company estimates it will have to spend $150,000 to restore the
site to an environmentally acceptable condition. The property will then be sold for $90,000.
During the last six months of 2022, 100,000 tonnes of ore were mined and sold.
Amortizable Cost per Unit:
Amount of Amortization Allocated:
Amount to be allocated to the restoration liability:
a) Prepare the journal entry to record the depletion expense.
Date
Particulars
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bbb1023-8679-4974-8088-d39c72847843%2Fae5f74f0-5fc1-4ad4-9ff0-b9b4b015bb57%2Fytgl2po_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise One
On July 1, 2022, Phillips Inc. Invested $480,000 in a mine estimated to have 800,000 tonnes of ore.
At the end of production at the mine, the company estimates it will have to spend $150,000 to restore the
site to an environmentally acceptable condition. The property will then be sold for $90,000.
During the last six months of 2022, 100,000 tonnes of ore were mined and sold.
Amortizable Cost per Unit:
Amount of Amortization Allocated:
Amount to be allocated to the restoration liability:
a) Prepare the journal entry to record the depletion expense.
Date
Particulars
Debit
Credit
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