Diamond Company acquires an ore mine at a cost of $1,300,000. It incurs additional costs of $200,000
Question:
Diamond Company acquires an ore mine at a cost of $1,300,000. It incurs additional costs of $200,000 to access the mine, which is estimated to hold 500,000 tons of ore. The estimated value of the land after the ore is removed is $150,000.
1. Prepare the entry(ies) to record the cost of the ore mine.
2. Prepare the year-end adjusting entry if 90,000 tons of ore are mined and sold the first year.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
1 Ore Mine 1500000 Cash 1500000 To record cost o...View the full answer
Answered By
Joram mutua
I am that writer who gives his best for my student/client. Anything i do, i give my best. I have tutored for the last five years and non of my student has ever failed, they all come back thanking me for the best grades. I have a degree in economics, but i have written academic papers for various disciplines due to top-notch research Skills.In additional, I am a professional copywriter and proofreader.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Accounting questions
-
Corentine 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. The estimated value 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. The estimated value of the...
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients for the current period: Required: 1. Determine the total nursing costs...
-
Show that each of the following families is an exponential family. (a) Normal family with either parameter or known (b) Gamma family with either parameter or known or both unknown (c) Beta family...
-
Your firm has 7,500 bonds outstanding currently priced at $1,104.36, paying a $40 annual coupon and sporting a 1.35% YTM. If the coupon is paid out semi-annually, how much cash will your firm need on...
-
MAC Industries completed the following inventory transactions during the month of August: Requirements 1. Without resorting to calculations, determine which inventory method will result in MAC...
-
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 65 and puts $11,000 into an account earning 10% compounded annually. Required: Calculate how...
-
Q: Almarai Company sells milk bottles for $0.50 a bottle to retailers. For the year 2024, the following data is management estimation of revenues and costs to produce 3,600,000 bottles: Sales...
-
Random Inc. Cost data for the last 3 years Overhead Costs Units Produced January-17 $78,000 5,679 Use regression and show the equation used for Random to separate overhead into fixed and variable...
-
Horizon Co. owns equipment that cost $138,750, with accumulated depreciation of $81,000. Horizon sells the equipment for cash. Record the sale of the equipment assuming Horizon sells the equipment...
-
Which of the following assets are reported on the balance sheet as intangible assets ? Which are reported as natural resources? (a) Timberland, (b) Patent, (c) Leasehold, (d) Oil well, (e) Equipment,...
-
Should the members of a supply chain maximize individual profits in order to increase the overall supply chain surplus? Explain.
-
A 22.7-g sample of diatomic oxygen gas molecules is in a sealed rigid container that has a volume of \(0.0240 \mathrm{~m}^{3}\). If the gas is initially at \(-1.50^{\circ} \mathrm{C}\), by how much...
-
An ideal gas undergoes an isentropic process that changes its pressure from \(P_{i}\) to \(P_{f}\) and its volume from \(V_{\mathrm{i}}\) to \(V_{t}\). What is the work done on the gas?
-
An iceberg initially at \(273 \mathrm{~K}\) is stopped in its motion by a small island. During the first few seconds of contact, \(10 \mathrm{~kJ}\) of energy is transferred thermally from the island...
-
At room temperature, do collisions between nitrogen molecules have enough energy to set a nitrogen molecule rotating? Enough to set it vibrating? The quantum of energy associated with rotation is...
-
Derive an expression for converting a temperature (a) from the Celsius scale to the Fahrenheit scale, (b) from the Kelvin scale to the Fahrenheit scale, and (c) from the Fahrenheit scale to the...
-
Why is a strictly economic definition of development inadequate? What do you understand economic development to mean? Can you give hypothetical or real examples of situations in which a country may...
-
Given find the value of k. es 1 e kx dx = 1 4'
-
Boeing and Airbus are the main producers of commercial airplanes and dominate the markets for wide-bodied super jumbos and for smaller planes. Passenger traffic is predicted to create a demand for...
-
On November 1, 2015, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. Required 1....
-
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your...
-
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your...
-
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible...
-
Many complex organizations use parallel career tracks for employees. Give a (short) example of what such a program might look like and describe why an organization might implement such a program. .
-
Technology has been identified as the main factor in the future success of public administration within public service organizations; however, there are some risks and limitations associated with the...
Study smarter with the SolutionInn App