a. cash flow from operating activities on the urth year les LO Problem 8-31A Accounting for depletion Flannery Company engages in the exploration and development of many types of natural CHECK FIG resources. In the last two years, the company has engaged in the following activities: Jan. I, 2016 Purchased for $1,500,000 a silver mine estimated to contain 100.000 tons of July 1, 2016 Purchased for $1,700,000 a tract of timber estimated to yield 1,000,000 board Feb 1, 2017 Purchased for $2,700,000 a gold mine estimated to yield 50,000 tons of gold- Sept. 1. 2017 Purchased oil reserves for $1,300,000. The reserves were estimated to contain silver ore. veined ore. en feet of lumber and the residual value of the land was estimated at $100,000. els francia al statements a. Silver Mind $210,000 b. Total Natur $4,844,00 270.000 barrels of oil, of which 10,000 would be unprofitable to pump. Cash Flow Required NA Salvage value Prepare the journal entries to account for the following: (1) The 2016 purchases. (2) Depletion on the 2016 purchases, assuming that 14,000 tons of silver were mined and 500,000 board feet of lumber were cut. (3) The 2017 purchases. (4) Depletion on the four natural resource assets, assuming that 20,000 tons of silver ore, 300,000 board feet of lumber, 4,000 tons of gold ore, and 50,000 barrels of oil were extracted. Prepare the portion of the December 31, 2017, balance sheet that reports natural resources Assume that in 2018 the estimates changed to reflect only 20,000 tons of gold ore remaining, Prepare the depletion journal entry in 2018 to account for the extraction of 10,000 tons of gold ore Problem on EB 31A B b) For each year record the transactions in general ouma formal and post them to accounts Aww Towing Service, Gene Jumal 1 5 Fert Account De Credit G 7 Yen Cash Common Stock 9 10 112 13 Retained in Casol Expert 15 17 10 19 2014 21 Wie 27 1 AD PESA and Typ here to a O $ b. 20 M 12000 SIGN IN TO OTICE looks like your old credential e out of date. Please in spadu so we can very your subscription Sign in 14 D G M Service Revenue Accumulated Depreciation M 25 267 27 28 29 JO 31 2 121 33 34 352 36 37 383 39 40 414 42 13 44 45 LE 43 50 2 PS 1A parts and Type here to search * 2:59 PM 11/12 PROCITO VIEWoman Vi sout woonheid Esbediting SIGN IN TO ORICE your student of God wou on Sign in M 541 2 Preparacion Year 12 Year 72 T Ya 11 1511Abrenda To here to O $ e AQ 20 PM 2 B M Yeart Year? Year Service Revenge 70 79 01 Expenses Maintenance Golpo Depreciation Experte Te Expenses 03 Nunc 36 87 59 Changes in SE SY Yew 14 * * Benguen the Stowwe Ending Cam Sic Deggenda 100 Pro 3 11 5 7 8 9 O R P TUHLE He your stored credentes out of a seadmily you to Sign in 12 n B Bang Rand Eaming Plus Net Income Ending Retinad Eumenge G H 1 11 2 Total Stockholms Eauty You 2 Balance Sheets of December 31 5 35 Assets Cash Wheck 10. L Accumulated Dep 11 Total Assets 12 10 1 10 17 18 Stockholders at Comment Sock TE Total Shoes Total lists and 120 21 22 123 134 123 ITA dd prochere to see O CO- 8:00 PM 111
