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Exercise 8-19 A Computing and recording depletion expense LO 8-9 Colorado Mining paid $600,000 to acquire a mine with 40,000 tons of coal reserves. The

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Exercise 8-19 A Computing and recording depletion expense LO 8-9 Colorado Mining paid $600,000 to acquire a mine with 40,000 tons of coal reserves. The following statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 15,000 tons of coal in Year 1 and 18,000 tons in Year 2. Assets + Coal Res. Rev. - Exp. - Net Ine. Cash Flow Cash 800,000 Equity Com. Stk. + Ret. Earn. 800,000 + NA - - NA NA - NA - NA NA Required a. Compute the depletion charge per unit. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. c. Prepare the general journal entries to record the depletion expense for years 1 and 2. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depletion charge per unit. Depletion charge per unit Required B > b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. c. Prepare the general journal entries to record the depletion expense for years 1 and 2. Complete this question by entering your answers in the tabs below. Required A Required B Required Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. (Ir column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for Net Change and NA to indicate affected by the event. Enter any decreases to account balances with a minus sign.) Assets COLORADO MINING Statements Model Stockholders' Equity Revenue - Expense Common Retained Stock Earnings 800.000 Net Income Cash Flow Cash Coal Reserves 800 000 Depiction for Year Depletion for Year 2 Required A Required B Required C Prepare the general journal entries to record the depletion expense for years 1 and 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record depletion expense. Note: Enter debts before credits Date General Journal Debit Credit Year 1

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