Il of- X FrediMore Infory foc., PTouchstone Resources, Inc.'s balance sheet includes three assets: Natural gas, Oil, and Coalreserves. Suppose Touchstone Resources, Inc., paid S2,100,000 in cash for the right to work amine with an estimated 100,000 tons of coal. Assume the company paid $60,000 to removeunwanted buildings from the land and $41,000 to prepare the surface for mining. Further,assume that Touchstone Resources, Inc., signed a $35,000 note payable to a company thatwill return the land surface to its original condition after the mining ends. During the first year,Touchstone Resources, Ic., removed 43,000 tons of coal, which it sold on account for $42 perton. Operating expenses for the first year totaled $427,000, all paid in cash.PrintDone Consider the following:A (Click the icon to view the information.)Requirements1. Record all of Touchstone Resources, Inc.'s transactions, including depletion, for the first year.2. Prepare the company's income statement for its coal operations for the first year.Requirement 1. Record all of Touchstone Resources, Inc.'s transactions, including depletion, for the first year. (Record debits first, then credits. Exclude explanationsfrom all journal entries.)Begin by recording the entry for the acquisition of the right to work the mine.Touchstone Resources, Inc., paid $2,100,000 in cash for the right to work a mine with an estimated 100,000 tons of coal.Journal EntryDateAccountsDebitCredit

Step 1 Journal is the part of book keeping.

Requirements 1. Řecord all of Touchstone Resources, Inc.'s transactions, including depletion, for the first year. 2. Prepare the company's income statement for its coal operations for the first year.

Requirements 1. Řecord all of Touchstone Resources, Inc.'s transactions, including depletion, for the first year. 2. Prepare the company's income statement for its coal operations for the first year.

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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