On January 1, 2019, Lakeside Enterprises purchased a copper mine for $1,800,000. The company expects the...
On January 1, 2019, Lakeside Enterprises purchased a copper mine for $1,800,000. The company expects the resources to produce 12,000,000 units of the product. Prepare the journal entry to record depletion expense for the month of January assuming that 20,000 units were mined and 15,000 of those units were sold.
Presented below is information related to plant assets, natural resources and intangibles at year end on December 31, 2019 for Rangel Company. Prepare a Balance Sheet for Rangal Company that shows how these items would be presented. Buildings 1,080,000 Goodwill 350,000 Patents 430,000 Coal mine 440,000 Accumulated depreciation 620,000 Accumulated depletion 275,000 Rangal Company Balance Sheet (partial) As of December 31, 2019
Homework Answers
| Date | Accounts | Debit | Credit |
| January 31, 2019 | Depletion expense (1800000/12000000*20000) | $3,000 | |
| Accumulated depletion | $3,000 | ||
| Balance sheet (partial) | ||
| Buildings | 1,080,000 | |
| Less: Accumulated depreciation | 620,000 | $460,000 |
| Goodwill | 350,000 | |
| Patents | 430000 | |
| Coal mine | 440000 | |
| Less: Accumulated depletion | 275000 | 165000 |
| $1,405,000 | ||
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On January 1, 2019, Lakeside Enterprises purchased a copper mine
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