
(a)
Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:
To record: the
(b)
To record: the journal entry for the payment of fees and other costs.
(c)
To record: the journal entry for the depletion of the first year.

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Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
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