cesMontana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the minecosting $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells187,200 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 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 JournalDecember 31 Depletion expense-Mineral depositRecord entryAccumulated depletion-Mineral depositClear entryDebitCreditView general journal cesMontana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the minecosting $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells187,200 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 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 JournalDecember 31 Depletion expense-Mineral depositRecord entryAccumulated depletion-Mineral depositClear entryDebitCreditView general journal

Name: cesMontana Mining Company pays $4,834,810 for an ore deposit containi
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: cesMontana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the minecosting $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mine

Depreciation is the reduction in the value of tangible asset due to its use or wear and tear.…

Business

Accounting

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.)

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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 85,978 tons will be recovered. During the first year the company extracted 4,283 tons of ore. The depletion expense is a.$28,910.25 b.$53,500.20 c.$45,126.00 d.$26,651.16
A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation charges amounted to $5000. The declared salvage value was $25,000; useful life of the machine was 12 years. At the end of Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $90,000. Compute the book value of the machine at end of Year 4 and determine the loss or gain of depreciation on the sale using: a. Straight-Line Methodb. Sinking fund at 8%c. Double Declining Balance Methodd. Sum-of-the-Years-Digits Method
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
On January 1, Year 2, Webb Construction Company overhauled four cranes resulting in a slight increase in the life of the cranes. Such overhauls occur regularly at two-year intervals and have been treated as maintenance expense in the past. Management is considering whether to capitalize this year's $28,310 cash cost expense. Assume that the cranes have a remaining useful life of two years and no expected salvage value. Assume straight-line depreciation. the Cranes asset account or to expense it as a maintenance Required a. Determine the amount of additional depreciation expense Webb would recognize in Year 2 and Year 3 if the cost were capitalized in the Cranes account. b. Determine the amount of expense Webb would recognize in Year 2 and Year 3 if the cost were recognized as maintenance expense. c. Determine the effect of the overhaul on cash flow from operating activities for Year 2 and Year 3 if the cost were capitalized and expensed through depreciation charges. (Cash outflows…
Montana Mining Company pays $4,360,440 for an ore deposit containing 1,552,000 tons. The company installs machinery in the mine costing $245,300. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 177,800 tons of ore during the year. Prepare the December 31 year-end entries to record both the ore machinery depreciation should be in proportion to the mine's depletion depletion and the mining machinery depreciation. Mining Note: 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 December 31 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 12 Record the year-end adjusting entry for the depreciation expense of the mining machinery. Note: Enter debits before credits. Date…
Oki Company pays $283,500 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 $20,250 cash for a new component that increased the equipment's productivity. 2. Paid $5,063 cash for minor repairs necessary to keep the equipment working well. 3. Paid $13,200 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet > Record the betterment cost of $20,250 paid in cash. Note: Enter debits before credits. Debit Credit Transaction General Journal 1 MacBook Air
12. On July 23 of the current year, Dakota Mining Company pays $7,398,720 for land estimated to contain 8,808,000 tons of recoverable ore. It installs and pays for machinery costing $968,880 on July 25. The company removes and sells 451,000 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. 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.
None
ABC Company finds its records are incomplete concerning a piece of equipment used in its plant. According to the company records, the equipment has an estimated useful life of 10 years and an estimated salvage value of Php24,000. It has recorded Php12,000 in depreciation each year using the straight-line method. If the accumulated depreciation account shows a balance of Php72,000, what is the original cost of the equipment and how many years remain to be depreciated?
On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $168,000. The machine's useful life was estimated at four years or a total of 190,000 units with a $35,000 trade - in value. Archer Company's year-end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: (Do not round intermediate calculations.) Straight-line Double - declining - balance Units -of- production, assuming actual units produced were: Year 2021 2022 2023 2024 Units 39,900 43,550 54,200 72,000
Depletion: Calculating and Journalizing Mineral Works Co. acquired a salt mine at a cost of $1,700,000, with no expected salvage value. The estimated number of units available for production from the mine is 3,400,000 tons. a. During the first year, 200,000 tons are mined and sold. b. During the second year, 600,000 tons are mined and sold. Required: 1. Calculate the amount of depletion expense for both years. Year 1 Year 2 2. Prepare general journal entries for depletion expense. Page: 1 DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 1 Year 1 2 3 3 4 Year 2 4 5 6 6