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In February 2019, Noll purchased a coal mine at a cost of $3,000,000. The mine is...

In February 2019, Noll purchased a coal mine at a cost of $3,000,000. The mine is estimated to contain 200,000 tons of coal and to have a residual value of $500,000 after mining operations are completed. During 2019, a total of 20,000 tons of coal were removed from the mine but of that only 5,000 sold.                     

What journal entry would be required to record depletion in 2019?

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Answer #1
Depletion expense 62,500
Accumulated depletion 62,500
(3,000,000-500,000)/200,000*5,000

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