Accounting Problem Instructions Refer to Accounting Question 3 Part 1 png and Accounting Question 3 Part 2 png, for Part 2, use the list of accounts below for the Journal Entries List of Accounts Accumulated Depletion Accumulated Depreciation Vehicles Accumulated Depreciation Buildings Accumulated Depreciation Equipment Accumulated Depreciation Furniture Accumulated Depreciation Machinery Accumulated Depreciation Vehicles Accumulated Impairment Losses Building Accumulated Impairment Losses Equipment Accumulated Impairment Losses Land Accumulated Impairment Losses Machinery Accumulated Impairment Losses Mine Accumulated Impairment Losses Patents Accumulated Impairment Losses Vehicles Allowance for Loss on Write down of Held for Sale Assets Asset Retirement Obligation Buildings Cash Common Shares Contribution Expense Cost of Goods Sold Deferred Revenue Government Grants Depreciation Expense Equipment Exploration Expense Furniture Gain on Disposal of Vehicles Gain on Disposal of Building Gain on Disposal of Equipment Gain on Disposal of Furniture Gain on Disposal of Machinery Gain on Disposal of Vehicle Gain on Disposal of Land Interest Expense Interest Payable Inventory Investment Property Land Loss on Disposal of Vehicles Loss on Disposal of Building Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Land Loss on Disposal of Vehicles Loss on Expropriation Loss on Impairment Loss on Write down of Held for Sale Assets Machinery Mineral Resources No Entry Notes Payable Oil Property Recovery of Loss from Impairment Recovery of Loss from Write down of Held for Sale Assets Repairs and Maintenance Expense Retained Earnings Revaluation Surplus (OCI) Revenue Government Grants Royalty Expense Vehicles Part 1 At the beginning of 2020, Cullumber Company, a small private company, acquired a mine for $2, 105,000 Of this amount, $170,000 was allocated to the land value and the remaining portion to the minerals in the mine Surveys conducted by geologists found that approximately 13 million units of ore appear to be in the mine Cullumber had $210,000 of development costs for this mine before any extraction of minerals It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65,000 During 2020, 3 2 million units of ore were extracted and 2 50 million of these units were sold Calculate the depletion cost per unit for 2020 (Round answer to 3 decimal places, e g 52 751 ) Depletion cost per unitPrepare the required journal entry, if any, for the total amount of depletion for 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit Prepare the required journal entry, if any, for the total amount that is charged as an expense for 2020 for the cost of minerals sold during 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter O for the amounts Round answers to O decimal places, eg 5,275 ) Account Titles and Explanation Debit Credit

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Accounting Problem Instructions Refer to Accounting Question 3 Part 1.png and Accounting Question 3 Part 2.png, for Part 2, use the list of accounts below

Accounting Problem

Instructions

Refer to Accounting Question 3 Part 1.png and Accounting Question 3 Part 2.png, for Part 2, use the list of accounts below for the Journal Entries.

List of Accounts

Accumulated Depletion
Accumulated Depreciation - Vehicles
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Accumulated Depreciation - Furniture
Accumulated Depreciation - Machinery
Accumulated Depreciation - Vehicles
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
Accumulated Impairment Losses - Land
Accumulated Impairment Losses - Machinery
Accumulated Impairment Losses - Mine
Accumulated Impairment Losses - Patents
Accumulated Impairment Losses - Vehicles
Allowance for Loss on Write-down of Held for Sale Assets
Asset Retirement Obligation
Buildings
Cash
Common Shares
Contribution Expense
Cost of Goods Sold
Deferred Revenue - Government Grants
Depreciation Expense
Equipment
Exploration Expense
Furniture
Gain on Disposal of Vehicles
Gain on Disposal of Building
Gain on Disposal of Equipment
Gain on Disposal of Furniture
Gain on Disposal of Machinery
Gain on Disposal of Vehicle
Gain on Disposal of Land
Interest Expense
Interest Payable
Inventory
Investment Property
Land
Loss on Disposal of Vehicles
Loss on Disposal of Building
Loss on Disposal of Equipment
Loss on Disposal of Machinery
Loss on Disposal of Land
Loss on Disposal of Vehicles
Loss on Expropriation
Loss on Impairment
Loss on Write-down of Held for Sale Assets
Machinery
Mineral Resources
No Entry
Notes Payable
Oil Property
Recovery of Loss from Impairment
Recovery of Loss from Write-down of Held for Sale Assets
Repairs and Maintenance Expense
Retained Earnings
Revaluation Surplus (OCI)
Revenue - Government Grants
Royalty Expense
Vehicles

Part 1

At the beginning of 2020, Cullumber Company, a small private company, acquired a mine for $2, 105,000. Of this amount, $170,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 13 million units of ore appear to be in the mine. Cullumber had $210,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65,000. During 2020, 3.2 million units of ore were extracted and 2.50 million of these units were sold. Calculate the depletion cost per unit for 2020. (Round answer to 3 decimal places, e.g. 52.751.) Depletion cost per unitPrepare the required journal entry, if any, for the total amount of depletion for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Prepare the required journal entry, if any, for the total amount that is charged as an expense for 2020 for the cost of minerals sold during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, eg. 5,275.) Account Titles and Explanation Debit Credit