Raya's Mining Co purchased a mine for $8 million on July 1, 2014. The mine will generate an estimated 30 million tonnes of nickel. The mine has a residual value of $500 000, and the restoration cost at the end of the mine's useful life is estimated at $600 000. In the first year, 5 million tonnes of nickel were extracted. Prepare the journal entry to record the depletion expense for the first year ended June 30 2015.
Raya's Mining Co purchased a mine for $8 million on July 1, 2014. The mine will generate an estimated 30 million tonnes of nickel. The mine has a residual value of $500 000, and the restoration cost at the end of the mine's useful life is estimated at $600 000. In the first year, 5 million tonnes of nickel were extracted. Prepare the journal entry to record the depletion expense for the first year ended June 30 2015.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 6CE
Related questions
Question
![Raya's Mining Co purchased a mine for $8 million
on July 1, 2014. The mine will generate an
estimated 30 million tonnes of nickel. The mine
has a residual value of $500 000, and the
restoration cost at the end of the mine's useful life
is estimated at $600 000. In the first year, 5 million
tonnes of nickel were extracted.
Prepare the journal entry to record the depletion
expense for the first year, ended June 30, 2015.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a1a4885-4bfc-4b1b-851f-4117820fc9a8%2F62711e05-6a8e-4616-8309-632a90f5f5bb%2Ftmxokuk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Raya's Mining Co purchased a mine for $8 million
on July 1, 2014. The mine will generate an
estimated 30 million tonnes of nickel. The mine
has a residual value of $500 000, and the
restoration cost at the end of the mine's useful life
is estimated at $600 000. In the first year, 5 million
tonnes of nickel were extracted.
Prepare the journal entry to record the depletion
expense for the first year, ended June 30, 2015.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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.Recommended textbooks for you
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning