Exercise 8. On July 1,201, Hunt Inc. invested $800,000 in a mine estimated to have 800,000 tons of ore of uniform grade. The land is expected to be sold for $80,000 after the ore has been extracted. During the last 6 months of 201,100,000 tons of were mined and sold. a) Prepare the Adjusted Journal Entry to record this Deferred Cost at the end of the year. b) If we assume that only 80,000 of the 100,000 tons mined in 201 were actually sold in this year. Where would the costs of the 20,000 tons of unsold ore be reported? Exercise 9. The following are selected transactions of Franco Company for the current year. Based on this information, prepare the Adjusted Journal Entries required at the end of the year. Jan 1 - Purchased a small company and recorded goodwill of $150,000. a) How did the purchase of this company generate the asset goodwill of $150,000 ? b) Show the year end Adjusting Journal Entry if it has been determined that $50,000 of the Goodwill has been impaired this year