Solare Company acquired mineral rights for $168,000,000. The diamond deposit is estimated at 21,000,000 tons. During the current year,2,340,000 tons were mined and sold.a. Determine the depletion rate.per tonb. Determine the amount of depletion expense for the current year.c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank.December 31Previous

c).DateAccount title and explanationDebitCreditDec 31Depletion expense$18,720,000 Mineral rights…

Answered: Solare Company acquired mineral rights…

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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Depletion Entries Alaska Mining Co. acquired mineral rights for $16,780,000. The mineral deposit is estimated at 83,900,000 tons. During the current year, 12,600,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Intra-Spect Mining Co. acquired mineral rights for $78,000,000. The mineral deposit is estimated at 60,000,000 tons. During the current year, 13,800,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places. $4 per ton b. Determine the amount of depletion expense for the current year. $ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31
The Weber Company purchased a mining site for $580,128 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 85,978 tons will be recovered. During the first year the company extracted 4,283 tons of ore. The depletion expense is a.$28,910.25 b.$53,500.20 c.$45,126.00 d.$26,651.16
Solare Company acquired mineral rights for $334,600,000. The diamond deposit is estimated at 23,900,000 tons. During the current year, 3,400,000 tons were mined and sold. a. Determine the depletion rate. per ton b. Determine the amount of depletion expense for the current year. c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. December 31
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
Chuck Company purchases performs a major inspection on its machinery on 1 January 20X4 for $137,000. The company uses the straight-line method of depreciation. The company performs major inspections every 5 years. The bookkeeper erroneously expenses the entire amount to repairs and maintenance. The error is discovered at the end of 20X5. Required: Prepare the journal entry required in 20X5
Depletion entries Alaska Mining Co. acquired mineral rights for $17,575,000. The mineral deposit is estimated at 92,500,000 tons. During the current year, 13,900,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. LA b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. December 31 00 ******
Depletion Entries Alaska Mining Co. acquired mineral rights for $26,838,000. The mineral deposit is estimated at 149,100,000 tons. During the current year, 22,350,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 94,508 tons will be recovered. During the first year the company extracted 4,359 tons of ore. The depletion expense is a.$51,961.60 b.$23,966.29 c.$26,459.13 d.$53,643.00
Backwoods Mining Co. acquired mineral rights for $53,200,000. The mineral deposit is estimated at 19,000,000 tons. During the current year, 2,500,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
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…
Depletion Intra-Spect Mining Co. acquired mineral rights for $144,500,000. The mineral deposit is estimated at 85,000,000 tons. During the current year, 23,800,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$ per ton b. Determine the amount of depletion expense for the current year.$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31

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