Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $30,000. During 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate per ton to the nearest cent and round your final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income Depletion included in inventory 2020 Depletion deducted from income Depletion included in inventory 2021 Depletion deducted from income Depletion included in inventory 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. WHISTLER COMPANY Balance Sheet (partial) December 31, 2 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion 3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? WHISTLER COMPANY Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 December 31, 2021

On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $30,000. During 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate per ton to the nearest cent and round your final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income Depletion included in inventory 2020 Depletion deducted from income Depletion included in inventory 2021 Depletion deducted from income Depletion included in inventory 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. WHISTLER COMPANY Balance Sheet (partial) December 31, 2 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion 3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? WHISTLER COMPANY Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 December 31, 2021

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Depletion On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $30,000. During 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate per ton to the nearest cent and round your final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income $ Depletion included in inventory 2020 Depletion deducted from income Depletion included in inventory 2021 Depletion deducted from income $ Depletion included in inventory 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. WHISTLER COMPANY Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion 3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? WHISTLER COMPANY Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 $ December 31, 2021 띠 미 미
Transcribed Image Text:Depletion On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $30,000. During 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate per ton to the nearest cent and round your final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income $ Depletion included in inventory 2020 Depletion deducted from income Depletion included in inventory 2021 Depletion deducted from income $ Depletion included in inventory 2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used. WHISTLER COMPANY Balance Sheet (partial) December 31, 2019 - 2021 December 31, 2019 Mineral ore resources Less: Accumulated depletion December 31, 2020 Mineral ore resources Less: Accumulated depletion December 31, 2021 Mineral ore resources Less: Accumulated depletion 3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021? WHISTLER COMPANY Asset retirement obligation 2019 - 2021 December 31, 2019 December 31, 2020 $ December 31, 2021 띠 미 미
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Extractive Activities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS