Perez Company acquires an ore mine at a cost of S2.380.000. It Incurs additional costs of $666.400 to access the mine, whic is estimated to hold 1700.000 tons of ore. 215.000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the Information given. 1. & 2 Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which
Is estimated to hold 1,700,000 tons of ore. 215.000 tons of ore are mined and sold the first year. The estimated value of the
land after the ore Is removed is $340,000. Calculate the depletion expense from the Information glven.
1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Complete this question by entering your answers in the tabs below.
Depletion
Expense
General
Journal
Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.)
Cost
Salvage
Amount subject to depletion
Total units of capacity
Depletion per unit
Units extracted and sold in period
Depletion expense
Depletion Expense
General Journal >
Transcribed Image Text:Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which Is estimated to hold 1,700,000 tons of ore. 215.000 tons of ore are mined and sold the first year. The estimated value of the land after the ore Is removed is $340,000. Calculate the depletion expense from the Information glven. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense Depletion Expense General Journal >
Garcla Co. owns equipment that cost $82,400, with accumulated depreclation of $43,600.
Record the sale of the equipment under the following three separate cases assuming Garcla sells the equipment for (1)
$51,200 cash, (2) $38,800 cash, and (3) $33,700 cash.
Vlew transaction lot
Journal entry worksheet
<A
>
Record the sale of equipment assuming Garcia sells the equipment for $51,200
cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
Vlew general Journal
Transcribed Image Text:Garcla Co. owns equipment that cost $82,400, with accumulated depreclation of $43,600. Record the sale of the equipment under the following three separate cases assuming Garcla sells the equipment for (1) $51,200 cash, (2) $38,800 cash, and (3) $33,700 cash. Vlew transaction lot Journal entry worksheet <A > Record the sale of equipment assuming Garcia sells the equipment for $51,200 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry Vlew general Journal
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Depletion Accounting
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
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