QS 10-10 Natural resources and depletion LO P3
QS 10-10 Natural resources and depletion LO P3
Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800 to access the mine, which is estimated to hold 1,900,000 tons of ore. 225,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $380,000. Calculate the depletion expense from the information given.
1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Homework Answers
Perez Company acquires an ore mine at a cost of $1,400,000
Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of...
Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Perez Company acquires an ore mine at a cost of $4,060,000. It incurs additional costs of $1,136,800 to access the mine, which is estimated to hold 2,900,000 tons of ore. 275,000 tons of ore are mined and sold the first year. The estimated value of the la
Untitled.pngPerez Company acquires an ore mine at a cost of $4,060,000. It incurs
additional costs of $1,136,800 to access the mine, which is estimated
to hold 2,900,000 tons of ore. 275,000 tons of ore are mined and sold
the first year. The estimated value of the land after the ore is removed
is $580,000. Calculate the depletion expense from the information given.1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
Perez Company acquires an ore mine at a cost of $3,080,000. It incurs additional costs of...
Perez Company acquires an ore mine at a cost of $3,080,000. It incurs additional costs of $862,400 to access the mine, which is estimated to hold 2,200,000 tons of ore. 240,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $440,000. Calculate the depletion expense from the information given. Cost Salvage Amount Subject to depletion Total units of capacity Depletion per unit Units extracted and sold in...
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co....
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $4.755,880 for an ore deposit containing 1,518,000 tons. The company installs machinery in the mine costing $153,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 166,100 tons of ore during the remaining eight months of 2017 Hint Prepare the December...
Perez Company acquires an ore mine at a cost of $1,960,000. It incurs additional costs of $548,800 to access the min...
Perez Company acquires an ore mine at a cost of $1,960,000. It incurs additional costs of $548,800 to access the mine, which is estimated to hold 1,400,000 tons of ore. 200,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $280,000. Calculate the depletion expense from the information given 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry...
QS 9-5 Recording employee payroll taxes LO P2 On January 15, the end of the first...
QS 9-5 Recording employee payroll taxes LO P2 On January 15, the end of the first pay period of the year, North Company's employees earned $26,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,000 of federal income taxes, $429 of medical insurance deductions, and $180 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal...
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co....
Exercise 10-18 Depletion of natural resources LO P1,
P3
On April 2, 2017, Montana Mining Co. pays $4,977,890 for an ore
deposit containing 1,402,000 tons. The company installs machinery
in the mine costing $248,500, with an estimated seven-year life and
no salvage value. The machinery will be abandoned when the ore is
completely mined. Montana begins mining on May 1, 2017, and mines
and sells 165,800 tons of ore during the remaining eight months of
2017.
Prepare the December...
Accounting
Perez Company acquires an ore mine at a cost of $3,920,000. It incurs additional costs of $1,097,600 to access the mine, which is estimated to hold 2,800,000 tons of ore. 270,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $560,000. Calculate the depletion expense from the information given.Cost$. 5,017,600Salvage. 560,000Amount subject to depletion. ?Total units of capacity. 2,800,000Depletion per unit. ?Units extracted and sold in...
Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of...
Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Answer is complete but not entirely correct. Cost Salvage Amount...
Exercise 10-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $4.755,880 for an ore deposit containing 1,518,000 tons. The company installs machinery in the mine costing $153,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 166,100 tons of ore during the remaining eight months of 2017 Hint Prepare the December...
Perez Company acquires an ore mine at a cost of $1,960,000. It incurs additional costs of $548,800 to access the mine, which is estimated to hold 1,400,000 tons of ore. 200,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $280,000. Calculate the depletion expense from the information given 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry...
QS 9-5 Recording employee payroll taxes LO P2 On January 15, the end of the first pay period of the year, North Company's employees earned $26,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,000 of federal income taxes, $429 of medical insurance deductions, and $180 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal...
Exercise 10-18 Depletion of natural resources LO P1,
P3
On April 2, 2017, Montana Mining Co. pays $4,977,890 for an ore
deposit containing 1,402,000 tons. The company installs machinery
in the mine costing $248,500, with an estimated seven-year life and
no salvage value. The machinery will be abandoned when the ore is
completely mined. Montana begins mining on May 1, 2017, and mines
and sells 165,800 tons of ore during the remaining eight months of
2017.
Prepare the December...
Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Answer is complete but not entirely correct. Cost Salvage Amount...
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