Mineral Works Co. acquired a salt mine at a cost of $1,700,000. The estimated number of units
Question:
Mineral Works Co. acquired a salt mine at a cost of $1,700,000. The estimated number of units available for production from the mine is 3,400,000 tons.
(a) During the first year, 200,000 tons are mined and sold.
(b) During the second year, 600,000 tons are mined and sold.
REQUIRED
1. Calculate the amount of depletion expense for both years.
2. Prepare general journal entries for depletion expense.
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1 Depletion rate 1700000 3400000 tons 050 per ton Year 1200000 050 ...View the full answer
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