Flannery 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 Jan Year 1 Purchased for $28e,980 a silver mine estimated to contain 828,880 tons of silver ore July , Year 1 Purchased for $2,898,8ee cash a tract of land containing timber estimated to yield 3,848,8e8 board feet of lumber At the time of purchase, the land had an appraised of $179,88 Feb. 1, Year 2 Purchased for $781,88e a gold mine estimated to yield 29,988 tons of gold-veined ore Sept., Year 2 Purchased oil reserves for $70e,880. The reserves were estimated to contain 248,88e barrels of oil, of which 25,88e would be unprofitable to pump Required a. Prepare the journal entries to account for the following: (1) The Year 1 purchases. (2) Depletion on the Year 1 purchases, assuming that 71,000 tons of silver were mined and 971,000 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 sllver ore, 1,126,000 board feet of lumber, 8,800 tons of gold ore, and 82,000 barrels of oll 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 50,320 tons of gold ore remalning. Prepare the depletion journal entry In Year 3 to account for the extraction of 35,224 tons of gold ore Complete this question by entering your answers in the tabs below Required A Required BRequired C Prepare the journal entries to account for the following: (1) The Year 1 purchases (2) Depletion on the Year 1 purchases, assuming that 71,000 tons of silver were mined and 971,000 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, 1,126,000 board feet of lumber, 8,800 tons of gold ore, and 82,000 barrels of oil were extracted. (Round all cost estimated to 2 decimal places and final answers to the nearest dollar amount. Enter depletion expenses in the given order. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lessA Journal entry worksheet Record purchase of the silver mine for cash. Note: Enter debits before credits Debit Credit Date General Journal 1/1/Year 1 Silver mine Cash Clear entry View general journal Record entry Required A RequiredB Complete this question by entering your answers in the tabs below Required A Required BRequired C Prepare the portion of the December 31, Year 2, balance sheet that reports natural resources. (Round your answers to the nearest dollar amount.) Natural Resources Silver mine (less depletion) Timber (less depletion) Gold mine (less depletion) Oil reserves (less depletion) Total natural resources Land Total View transaction list Journal entry worksheet Record depletion expenses of the gold mine Note: Enter debits before credits Date General Journal Debit Credit Year 3 Record entry Clear entry View general journal Required B Required C
