Fannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: January 1, Year 1 Purchased for $220,080 a silver mine estinated to contain 829 , 800 tons of silver ore. July 1, Year 1 purchased for $1,910, 0ed cash a tract of land containing timber estinated to yield 2 , 939, 900 board feet of lumber. At the tine of purchsse, the land had an appraised of $184,000. February 1, Year 2 Purchased for $754,000 a gold nine estimated to yield 30 , 680 tons of gold-veined are. septenber 1, Year 2 purchased oil reserves for 5759 , 00e. The reserves were estimated to contain 242 , 000 barrels of oil, of which 25,60 would be unprotitable to pusp. Required a. Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash. (1) The Year 1 purchases (2) Depletion on the Year 1 purchases, assuming that 74,000 tons of silver were mined and 1,025,000 board feet of lumber were cut. (3) The Year 2 purchases. (4) Depletion on the four natural resource assets, assuming that 61,000 tons of silver ore, 1,46,000 board feet of lumber, 9,100 tons of gold ore, and 83,000 barrels of oil were extracted. b. Prepare the portion of the December 31, Year 2 , balance sheet that reports natural resources. c. Assume that in Year 3 the estimates changed to reflect only 62,900 tons of gold ore remaining. Prepare the depletion joumal entry in Year 3 to account for the extraction of 44.030 tons of gold ore. Complete this question by entering your answers in the tabs below. Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash. (1) The Year 1 purchases. (2) Deplebion on the Year 1 purchases, assuming that 74,000 tons of silver were mined and 1,025,000 board feet of lumber were cut. (4) Depletion on the four natural resource assets, assuming that 61,000 tons of silver ore, 1,146,000 board feet of lumber, 9,100 tons of (3) The Year 2 purchases, gold ore, and 83,000 barrels of oll were extracted. (Round ail estimated costs 7022 decmimil places and firsl answers to the nearest, requined in the first account feld. Fannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: January 1, Year 1 Purchased for $220,080 a silver mine estinated to contain 829 , 800 tons of silver ore. July 1, Year 1 purchased for $1,910, 0ed cash a tract of land containing timber estinated to yield 2 , 939, 900 board feet of lumber. At the tine of purchsse, the land had an appraised of $184,000. February 1, Year 2 Purchased for $754,000 a gold nine estimated to yield 30 , 680 tons of gold-veined are. septenber 1, Year 2 purchased oil reserves for 5759 , 00e. The reserves were estimated to contain 242 , 000 barrels of oil, of which 25,60 would be unprotitable to pusp. Required a. Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash. (1) The Year 1 purchases (2) Depletion on the Year 1 purchases, assuming that 74,000 tons of silver were mined and 1,025,000 board feet of lumber were cut. (3) The Year 2 purchases. (4) Depletion on the four natural resource assets, assuming that 61,000 tons of silver ore, 1,46,000 board feet of lumber, 9,100 tons of gold ore, and 83,000 barrels of oil were extracted. b. Prepare the portion of the December 31, Year 2 , balance sheet that reports natural resources. c. Assume that in Year 3 the estimates changed to reflect only 62,900 tons of gold ore remaining. Prepare the depletion joumal entry in Year 3 to account for the extraction of 44.030 tons of gold ore. Complete this question by entering your answers in the tabs below. Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash. (1) The Year 1 purchases. (2) Deplebion on the Year 1 purchases, assuming that 74,000 tons of silver were mined and 1,025,000 board feet of lumber were cut. (4) Depletion on the four natural resource assets, assuming that 61,000 tons of silver ore, 1,146,000 board feet of lumber, 9,100 tons of (3) The Year 2 purchases, gold ore, and 83,000 barrels of oll were extracted. (Round ail estimated costs 7022 decmimil places and firsl answers to the nearest, requined in the first account feld
