Corentine Company acquires an ore mine at a cost of $ 1,400,000. It incurs additional costs of

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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 the land after the ore is removed is $ 200,000.

1. Prepare the entry( ies) to record the cost of the ore mine.

2. Prepare the year- end adjusting entry if 180,000 tons of ore are mined and sold the first year.

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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Question Posted: Nov 26, 2013 09:39 AM

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Corentine Company acquires an ore mine at a cost of $ 1,400,000. It incurs additional costs of

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Fundamental accounting principle

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