Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please solve the question correctly and according to the pattern. At the beginning of 2020, Pharoah Company, a small private company, acquired a

image text in transcribed

image text in transcribed

image text in transcribed

can you please solve the question correctly and according to the pattern.

At the beginning of 2020, Pharoah Company, a small private company, acquired a mine for $2,405,000. Of this amount. $120,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 15 million units of ore appear to be in the mine. Pharoah had $195,000 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 $70,000. During 2020, 2.7 million units of ore were extracted and 2.00 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 unit $ Prepare 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 e Textbook and Media 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 for the amounts. Round answers to 0 decimal places, eg. 5,275.) Credit Debit Account Titles and Explanation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

10th Canadian Edition, Volume 1

978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736

More Books

Students also viewed these Accounting questions

Question

3. Make extra-credit work available to add points to course grades.

Answered: 1 week ago