$2$

Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the

company has engaged in the following activities:

June $26,2024$ at $7$:$27$ PM

Record purchase of the silver mine for cash.

$2$

Record purchase of the Timber and land for cash.

$3$

Record depletion expenses of the silver mine.

$4$

Record depletion expenses of the Timber.

$5$

Record purchase of the Gold Mine for cash.

$6$

Record purchase of the oil reserves for cash.

$7$

Record depletion expense of the silver mine.

$8$

Record depletion expense of the Timber.

$9$

Record depletion expense of the Gold mine.

$10$ Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the

company has engaged in the following activities:

January $1,$ Year $1$ Purchased for $$210,000$ a silver mine estimated to contain $835,000$ tons of silver ore.

July $1,$ Year $1$ Purchased for $$1,860,000$ cash a tract of land containing timber estimated to yield $3,050,000$ board

feet of lumber. At the time of purchase, the land had an appraised of $$107,000.$

February $1,$ Year $2$ Purchased for $$759,000$ a gold mine estimated to yield $31,600$ tons of gold$-$veined ore.

September $1,$ Year $2$ Purchased oil reserves for $$709,000.$ The reserves were estimated to contain $254,000$ barrels of oil,

of which $17,000$ would be unprofitable to pump.

Required

a$.$ Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash.

$(1)$ The Year $1$ purchases.

$(2)$ Depletion on the Year $1$ purchases, assuming that $70,000$ tons of silver were mined and $983,000$ board feet of lumber were cut.

$(3)$ The Year $2$ purchases.

$(4)$ Depletion on the four natural resource assets, assuming that $60,000$ tons of silver ore, $1,187,000$ board feet of lumber, $9,100$ tons

of gold ore, and $82,000$ barrels of oil were extracted.

b$.$ Prepare the portion of the December $31,$ Year $2,$ balance sheet that reports natural resources.

c$.$ Assume that in Year $3$ the estimates changed to reflect only $59,200$ tons of gold ore remaining. Prepare the depletion journal entry

in Year $3$ to account for the extraction of $41,440$ tons of gold ore.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Prepare the portion of the December $31,$ Year $2,$ balance sheet that reports natural resources. $($Round your answers to the

nearest dollar amount.$)$ Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the

company has engaged in the following activities:

January $1,$ Year $1$ Purchased for $$210,000$ a silver mine estimated to contain $835,000$ tons of silver ore.

July $1,$ Year $1$ Purchased for $$1,860,000$ cash a tract of land containing timber estimated to yield $3,050,000$ board

feet of lumber. At the time of purchase, the land had an appraised of $$107,000.$

February $1,$ Year $2$ Purchased for $$759,000$ a gold mine estimated to yield $31,600$ tons of gold$-$veined ore.

September $1,$ Year $2$ Purchased oil reserves for $$709,000.$ The reserves were estimated to contain $254,000$ barrels of oil,

of which $17,000$ would be unprofitable to pump.

Required

a$.$ Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash.

$(1)$ The Year $1$ purchases.

$(2)$ Depletion on the Year $1$ purchases, assuming that $70,000$ tons of silver were mined and $983,000$ board feet of lumber were cut.

$(3)$ The Year $2$ purchases.

$(4)$ Depletion on the four natural resource assets, assuming that $60,000$ tons of silver ore, $1,187,000$ board feet of lumber, $9,100$ tons

of gold ore, and $82,000$ barrels of oil were extracted.

b$.$ Prepare the portion of the December $31,$ Year $2,$ balance sheet that reports natural resources.

c$.$ Assume that in Year $3$ the estimates changed to reflect only $59,200$ tons of gold ore remaining. Prepare the depletion journal entry

in Year $3$ to account for the extraction of $41,440$ tons of gold ore.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Assume that in Year $3$ the estimates changed to reflect only $59,200$ tons of gold ore remaining. Prepare the depletion journal

entry in Year $3$ to account for the extraction of $41,440$ tons of gold ore. $($Round intermediate calculation to $2$ decimal places

and final answers to nearest dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required"

in the first account field.$)$