eBook

Show Me How

Depletion entries

Alaska Mining Co$.$ acquired mineral rights for $$67,500,000.$ The mineral deposit is estimated at $30,000,000$ tons. During the current year, $4,000,000$ tons were mined and sold.

a$.$ Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places.

$

b$.$ Journalize the adjusting entry on December $31$ to recognize the depletion expense. If an amount box does not require an entry, leave it blank.

December $31$

All Bo

eBook

Show Me How

Amortization entries

Kleen Company acquired patent rights on January $10$ of Year $1$ for $$2,800,000.$ The patent has a useful life equal to its legal life of $8$ years. On January $7$ of Year $4,$ Kleen successfully defended the patent in a lawsuit at a cost of $$38,000.$

a$.$ Determine the patent amortization expense for Year $4$ ended December $31.$

$

b$.$ Journalize the adjusting entry on December $31$ of Year $4$ to recognize the amortization. If an amount box does not require an entry, leave it blank.