Brief Exercise 11-9

Concord Corporation acquires a coal mine at a cost of $456,000. Intangible development costs total $114,000. After extraction has occurred, Concord must restore the property (estimated fair value of the obligation is $91,200), after which it can be sold for $182,400. Concord estimates that4,560tons of coal can be extracted.

If798tons are extracted the first year, prepare the journal entry to record depletion.(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

E 11-11 Machinery purchased for $74,400by Indigo Co. in 2013 was originally estimated to have a life of8years with a salvage value of $4,960at the end of that time. Depreciation has been entered for5years on this basis. In 2018, it is determined that the total estimated life should be10years with a salvage value of $5,580at the end of that time. Assume straight-line depreciation.

(a)

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Prepare the entry to correct the prior year's depreciation, if necessary.(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit