Question
Bramble Mining Co. purchased for $5,274,000 a mine that is estimated to have 52,740,000 tons of ore and no salvage value. In the first year,
Bramble Mining Co. purchased for $5,274,000 a mine that is estimated to have 52,740,000 tons of ore and no salvage value. In the first year, 5,790,000 tons of ore are extracted.
(a1)
Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)
Depletion cost per unit | $enter the depletion cost in dollars per ton rounded to 2 decimal places per ton |
(a2)
Prepare the journal entry to record depletion for the first year. (List all debit entries before credit entries. Credit account titles are automatically indented when 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 |
---|---|---|
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
(b)
Show how this mine is reported on the balance sheet at the end of the first year.
Bramble Mining Co. Balance Sheet (Partial) | ||||
---|---|---|---|---|
enter a balance sheet item | $enter a dollar amount | |||
select between addition and deduction AddLess: enter a balance sheet item | enter a dollar amount | $enter a subtotal of the two previous amounts |
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