Purchase date: Dec 31, 20 Purchase price: 4000000 Additional expenditures: 5000000 Useful life (years): 18 Total est. output: 2500000 Decommissioning cost: 2750000 Discount rate: 5% 2021 output: 115000 a) Prepare all journal entries for the years ended December 31, 2020 and 2021. b) The mining operations ceased on December 31, 2034. A total of 2,000,000 ounces were mined at the end of December 31, 2033. A total of 225,000 ounces were mined during the year ended December 31, 2034. Write all journal entries at December 31, 2034.
Purchase date: Dec 31, 20 Purchase price: 4000000 Additional expenditures: 5000000 Useful life (years): 18 Total est. output: 2500000 Decommissioning cost: 2750000 Discount rate: 5% 2021 output: 115000 a) Prepare all journal entries for the years ended December 31, 2020 and 2021. b) The mining operations ceased on December 31, 2034. A total of 2,000,000 ounces were mined at the end of December 31, 2033. A total of 225,000 ounces were mined during the year ended December 31, 2034. Write all journal entries at December 31, 2034.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Purchase date: Dec 31, 20
Purchase price: 4000000
Additional expenditures: 5000000
Useful life (years): 18
Total est. output: 2500000
Decommissioning cost: 2750000
Discount rate: 5%
2021 output: 115000
a) Prepare all
b) The mining operations ceased on December 31, 2034. A total of 2,000,000 ounces were mined at the end of December 31, 2033. A total of 225,000 ounces were mined during the year ended December 31, 2034. Write all journal entries at December 31, 2034.
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