Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company installs machinery in the mine costing $197,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 174,800 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal

Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company installs machinery in the mine costing $197,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 174,800 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal

Name: Montana Mining Company pays $3,021,910 for an ore deposit containing
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Description: Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company installs machinery in the minecosting $197,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines a

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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The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 94,508 tons will be recovered. During the first year the company extracted 4,359 tons of ore. The depletion expense is a.$51,961.60 b.$23,966.29 c.$26,459.13 d.$53,643.00
Depletion Expense Prepare the entry to record the cost of the ore mine and year-end adjusting entry. General Journal View transaction list Journal entry worksheet < A B Record the cost of the ore mine in cash. Transaction 1 Note: Enter debits before credits. General Journal Debit Credit
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