2. Miyasawa Mining Company On Feb. 1, 2015, Miyasawa Mining Company purchased a mine for $80 million that is estimated have 250 000 tonnes of ore and a residual value of $3 million. The cost of restoration at the end of the useful life is estimated at $8 million. In 2015, 30 000 tonnes of ore were extracted. a) Calculate the amount of amortization that should be recorded on December 31, 2015. b) Calculate the amount of the restoration liability. c) Show the journal entry for December 31, 2015. 3. MacDougall Brothers The income statement approach to estimating uncollectible accounts is used by MacDougall Brothers. On January 31 the firm had accounts receivable in the amount of $750 000. The Allowance for Doubtful Accounts had a credit balance of $5 250. The controller estimated that the uncollectible accounts expense would amount to one-half of 1% of the $4 500 000 of net sales made during January. This estimate was entered in the accounts by an adjusting entry on January 31. On February 12, an account receivable from Carlotta Smith in the amount of $4 125 was determined to be worthless and was written off. However, on February 24, Smith won several million dollars in the lottery and immediately paid her $4 125 past-due account. a) Prepare journal entries in general journal form for Jan. 31, Feb. 12, and Feb. 24. C7 A B fx Depletion expense for 2015 DE F G H J K L M N -2345678007227567622722 21 1 Miyasawa Mining Company 3a) Depletion rate Depletion expense for 2015 9 10 b) Restoration Liability 11 12 13 14 15 General Journal Particulars 16 Date 17 c) 18 19 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 = = = = = = = Debit Page Credit U 02 A6 Q1 U 02 A6 Q2 U 02 A6 Q3 U 02 A6 Q4 U 02 A6 Q5 U 02 A6 Q6 + C D E F G H J K L M A B 1 MacDougall Brothers 2 3 Data provided 4 5 6 7 8 Accounts Receivable Allowance for Doubtful Accounts Net Sales Estimated loss percentage 9 10 11 Date 12 13 14 15 16 17 18 General Journal Particulars Debit Page Credit 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 U 02 A6 Q1 U 02 A6 Q2 U 02 A6 Q3 U 02 A6 Q4 U 02 A6 Q5 U 02 A6 Q6 +