Caldwell Mining Co. acquired mineral rights for $228,224,000. The mineral deposit is estimated at 356,600,000 tons. During the current year, 44,234,000 tons were mined and sold.

Required:

A.

Determine the depletion rate.

B.

Determine the amount of depletion expense for the current year.

C.

Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.

A. Determine the depletion rate. per ton

B. Determine the amount of depletion expense for the current year.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3