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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

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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 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

image text in transcribedimage text in transcribed
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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