Question

Monty Corporation, a publicly traded mining company, acquires a mine at a cost of $530,000. Capitalized development costs total $133,500. After the mine is depleted, $77,500 will be spent to restore the property, after which it can be sold for $160,000. Monty estimates that 5,000 tonnes of ore can be mined. Assuming that 850 tonnes are extracted in the first year, prepare the journal entry to record depletion. (Credit account titles are automatically indented when the anount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round per tonne to 2 decimal places, e.g. 15.75 and final answer to 0 decimal places, e.g. 1,575.) Account Titles and Explanation Debit Credit Inventory 319000 Exploration Expense 98770 Accumulated Depletion 220230

Answer 1

Any Mine lost - 539000 $ & den Cosh - 133,500 Reshevahon (est - (94,500) Sale procards - (160,000) 4,26,000 a 85.2 & per on 4, 26,000 soos tons Exploration Dr . 72,420 Expense Al TO Accumulated Depletion All 72,620 =) 85.26x850 72,620