Backwoods Mining Co. acquired mineral rights for $34,768,000. The mineral deposit is estimated at 16,400,000 tons. During the current year, 2,180,000 tons were mined and sold. Required: a. Determine the amount of depletion expense for the current year. b. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS Backwoods Mining Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable 622 Gain on Sale of Mineral Rights 116 Merchandise Inventory 117 Supplies EXPENSES 119 Prepaid Insurance 510 Cost of Merchandise Sold 120 Land 520 Salaries Expense 123 Delivery Truck 521 Advertising Expense 124 Accumulated Depreciation-Delivery Truck 522 Depreciation Expense-Delivery Truck 125 Equipment 523 Delivery Expense 126 Accumulated Depreciation-Equipment 524 Repairs and Maintenance Expense 130 Mineral Rights 529 Selling Expenses 131 Accumulated Depletion 531 Rent Expense 132 Goodwill 532 Depreciation Expense-Equipment 133 Patents 533 Depletion Expense 534 Amortization Expense-Patents LIABILITIES 535 Insurance Expense 210 Accounts Payable 536 Supplies Expense 211 Salaries Payable 539 Miscellaneous Expense 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 720 Loss on Sale of Delivery Truck 215 Notes Payable 721 Loss on Sale of Equipment 722 Loss on Sale of Mineral Rights EQUITY 310 Owner's Capital 311 Owner's Drawing a. Determine the amount of depletion expense for the current year. $ 6. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3