An oil well cost $2,090,000 and is calculated to hold 350,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round anyintermediate calculations to the nearest cent, and your final answer to the nearest dollar)O A. Depletion Expense - Oil ReserveAccumulated Depletion - Oil ReserveOB. Oil Reserve InventoryAccumulated Depletion - Oil ReserveOC. Cost of Goods Sold - Oil ReserveAccumulated Depletion - Oil ReserveO D. Depletion Expense - Oil ReserveOil Revenue328,350328,350328,350328,350328,350328,350328,350328,350SICER

The depreciation expense is recorded for the fixed assets of the business. The depletion expense is…

News and is calculated to hold 350.000 barrels of oll There is no residual value Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round any intermediate calculations to the nearest and your final answer to the nearest dollar) OA. Depletion Expense - Oil Reserve Accumulated Depletion - Oil Reserve OB. Oil Reserve Inventory Accumulated Depletion - Oil Reserve OC. Cost of Goods Sold - Oil Reserve Accumulated Depletion - Ol Reserve OD. Depletion Expense - Oil Reserve Oil Revenue 328,350 328,350 328,350 328.350 328,350 328,350 328,350 328,350 CIT

News and is calculated to hold 350.000 barrels of oll There is no residual value Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round any intermediate calculations to the nearest and your final answer to the nearest dollar) OA. Depletion Expense - Oil Reserve Accumulated Depletion - Oil Reserve OB. Oil Reserve Inventory Accumulated Depletion - Oil Reserve OC. Cost of Goods Sold - Oil Reserve Accumulated Depletion - Ol Reserve OD. Depletion Expense - Oil Reserve Oil Revenue 328,350 328,350 328,350 328.350 328,350 328,350 328,350 328,350 CIT

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

A storage tank acquired at the beginning of the fiscal year at a cost of $95,000 has an estimated residual value of $5,000 and an estimated useful life of 25 years. a. Determine the amount of annual depreciation by the straight-line method.$ b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 $ Year 2 $
Solare Company acquired mineral rights for $287,200,000. The diamond deposit is estimated at 35,900,000 tons. During the current year, 3,660,000 tons were mined and sold. a. Determine the depletion rate.$fill in the blank 5df5b004305d067_1 per ton b. Determine the amount of depletion expense for the current year.$fill in the blank 5df5b004305d067_2 c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 0ae001fa5fd7fc8_2 fill in the blank 0ae001fa5fd7fc8_3 fill in the blank 0ae001fa5fd7fc8_5 fill in the blank 0ae001fa5fd7fc8_6
Equipment acquired on January 8, 20Y1, at a cost of $675,000, has an estimated useful life of 17 years and an estimated residual value of $135,000. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depreciation? Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. Depreciation expense 20Y1$ 20Y2$ 20Y3$
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL fa straight-line and DDB for double-declining-balance. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A B C D MO E Cost Residual Value $ 31,000 62,000 87,000 252,000 211,000 6,000 21,000 31,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 30,000 5,600 9,000 23,100
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has an estimated residual value of $8,700, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? %$4 Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $98,242. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entrY, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipmentv Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank, Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment V Loss on Sale of Equipment y 00 00 000 %24
Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming that the equipment was sold at the end of the second year for $631,697 determine the gain or loss on the sale of the equipment Journalize the entry on Dec. 31 to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal SAMSUNG PreviouS Next
Glick Company purchased an oil reserve on July 1, Year 1 for $2,720,000. A total of 200,000 barrels of oil are expected to be extracted over the asset's life. During Year 1, 46,000 barrels are extracted and sold., The depletion charge for Year 1 would cause: Note: Do not round intermediate calculations. Multiple Choice an increase in stockholders' equity of $460,000. a decrease in assets of $625,600. a decrease in stockholders' equity of $200,000. a decrease in assets of $665,600.
Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $115,200 has an estimated residual value of $6,800 and an estimated useful life of four years. a. Determine the amount of annual depreciation by the straight-line method.$fill in the blank 1 b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 $fill in the blank 2 Year 2 $fill in the blank 3
Quavo Mining Co. acquired mineral rights for $16,500,000. The mineral deposit is estimated at 36,500,000 tons. During the current year, 10,037,500 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Do not round intermediate calculation and round your answer to nearest whole value.$fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the depletion expense. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Balance Sheet Assets = Liabilities + Stockholders' Equity - Accumulated depletion + No effect = No effect + Retained earnings fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Statement of Cash Flows Income Statement No effect fill in the blank 11 Depletion expense…
Supplies 1,400 f. Equipment was purchased on January 1 of this year at a cost of $60,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this vear and then determine the equipment's book value Journal Entry Accounts Debit Credit Depreciation Expense-Equipment Accumulated Depreciation-Equipment 60.000 f. 60,000 (? Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear All Check Answer 11:17 PM P Type here to search 9/14/2020 insert esc & #3 %24 backspace 8. Q tab Jock G. K pause NE M. alt ctri alt 1.
A 4 Estimated Residual: 5 Estimated Life in years: 6 Estimated Life in hours: 7 Actual Hours: 8 Year 1 Year 2 9 10 11 12 14 15 16 17 18 19 Year 3 Year 4 20 21 22 23 $ B 10,000 Year 1 2 Prepare the following Straight Line depreciation schedule by using the excel SLN FUNCTION (fx) to calculate the 13 Depreciation Expense for Years 1-4 in the Depreciation Expense column. Enter formulas or absolute cell references for the remaining cells. W|N 3 4 1200 4 360 270 350 220 с D SULLIVAN RANCH CORPORATION Depreciation Schedule-Straight Line Method End of year amounts Depreciation Expense E Accumulated Depreciation LL Book Value F