FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
9th Edition
ISBN: 9781265484040
Author: Wild
Publisher: MCG
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Chapter 8, Problem 20E
1.
To determine
Concept Introduction:
Wasting assets: The assets that are physically consumed when used and are generally natural resources like oil and gas fields, mineral deposits, and standing timber are referred to as wasting assets. These assets are extracted and used as part of raw material to be converted into products, until that conversion takes place, these are regarded as noncurrent assets.
The entry on January 1 to record the cost of the iron mine.
2.
To determine
Concept Introduction:
Wasting assets: The assets that are physically consumed when used and are generally natural resources like oil and gas fields, mineral deposits, and standing timber are referred to as wasting assets. These assets are extracted and used as part of raw material to be converted into products, until that conversion takes place, these are regarded as noncurrent assets.
The
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ces
Montana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the mine
costing $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells
187,200 tons of ore during the year.
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. (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
General Journal
December 31 Depletion expense-Mineral deposit
Record entry
Accumulated depletion-Mineral deposit
Clear entry
Debit
Credit
View general journal
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…
Natural Resources
The Stein Company acquires a copper mine at the cost of $950,000 on January 1. Along with the purchase price Stein pays additional costs associated with development of $75,000. Stein expects the mine will have a salvage value of $125,000 once all the copper has been mined. Best estimates are that the mine contains 300,000 tons of ore.
Required
a. Prepare the entry to record the purchase of the copper mine.
b. Prepare the December 31 year-end adjusting entry to record depletion is 40,000 tons of ore are mined and all the ore is sold.
c. Prepare the December 31 year-end adjusting entry to record depletion if 40,000 tons of ore are mined but only 10,000 tons of the ore are sold.
Description
Debit
Credit
a.
Purchase of Copper mine
b.
To record depletion on Copper mine.
c.
Copper inventory
To record depletion on Copper mine.
Chapter 8 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
Ch. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QS
Ch. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 17QSCh. 8 - Prob. 18QSCh. 8 - Prob. 19QSCh. 8 - Prob. 20QSCh. 8 - Prob. 21QSCh. 8 - Prob. 22QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Prob. 7PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1.1AACh. 8 - Prob. 1.2AACh. 8 - Prob. 1.3AACh. 8 - Prob. 1.4AACh. 8 - Prob. 2.1AACh. 8 - Prob. 2.2AACh. 8 - Prob. 2.3AACh. 8 - Prob. 3.1AACh. 8 - Prob. 3.2AACh. 8 - Prob. 3.3AACh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTN
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