On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that 360,000 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 $26,000. During 2019, Whistler mined 88,000 tons and sold 72,000 tons. During 2020, Whistler mined 114,000 tons and sold 115,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 54,000 tons. In 2021, Whistler mined 147,000 tons and sold 141,000 tons. Whistler uses a FIFO cost flow assumption. 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 CompanyBalance Sheet (partial)December 31, 2019 - 2021 December 31, 2019
On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that 360,000 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 $26,000. During 2019, Whistler mined 88,000 tons and sold 72,000 tons. During 2020, Whistler mined 114,000 tons and sold 115,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 54,000 tons. In 2021, Whistler mined 147,000 tons and sold 141,000 tons. Whistler uses a FIFO cost flow assumption. 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 CompanyBalance Sheet (partial)December 31, 2019 - 2021 December 31, 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that 360,000 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 $26,000.
During 2019, Whistler mined 88,000 tons and sold 72,000 tons. During 2020, Whistler mined 114,000 tons and sold 115,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 54,000 tons. In 2021, Whistler mined 147,000 tons and sold 141,000 tons. Whistler uses a FIFO cost flow assumption.
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 CompanyBalance 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 |
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