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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.

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. Note: 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

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Question

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
December 31
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal

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