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. 1, Year 1 Purchased for $205,000 a silver sine estimated to contain 846,000 tons of silver ore. July 1, Year 1 Purchased for $1,920,000 cash a tract of land containing timber estimated to yield 2,940,000 board feet of lumber At the time of purchase, the land had an appraised of $197,000. Feb. 1, Year 2 Purchased for $735,000 a gold wine estimated to yield 31,300 tons of gold veined ore. Sept. 1, Year 2 Purchased oil reserves for $733,000. The reserves were estimated to contain 265,000 barrels of oil, of which 23,000 would be unprofitable to pump. Required a. Prepare the joumal entries to account for the following C) The Year 1 purchases (2) Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined and 960,000 board feet of lumber were cut (3) The Year 2 purchases. (4) Depletion on the four natural resource ossets, assuming that 60,000 tons of silver ore, 1.250.000 board feet of tumber 8,700 tons of gold ore, and 82,000 barrels of oil were extracted b. Prepare the portion of the December 31 Year 2, balance sheet that reports natural resources c. Assume thot in Year 3 the estimates changed to reflect only 58.460 tons of gold ore remaining Prepare the depletion journal entry In Year 3 to account for the extraction of 40,922 tons of gold ore Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare the journal entries to account for the following: (1) The Year 1 purchases. (3) Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined and 960.000 board feet of lumber were cut. (3) The Year 2 purchases. 4) Depletion on the four natural resource assets, assuming that 60,000 tons of silver ore, 1,256,000 board feet of lumber, 8,700 tons of dollar amount inter 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 les View transactional Journal entry worksheet 5 7 9 8 10 4 > 6 1 3 2 Record purchase of the silver mine for cash Prepare the journal entries to account for the following: (1) The Year 1 purchases: (2) Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined. (3) The Year 2 purchases. (4) Depletion on the four natural resource assets, assuming that 60,000 tons of silver or gold ore, and 82,000 barrels of oil were extracted. (Round all cost estimated to 2 dec dollar amount. Enter depletion expenses in the given order. If no entry is required for required" in the first account field.) View transaction list Journal entry worksheet Record depletion expenses of the Timber Hotou enter debits before credits Date General Journal Debit Credit 12/31/Year 2 Record entry Clear entry View general Journal Required B > are the journal entries to account for the following: The Year 1 purchases. Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined and 96 The Year 2 purchases. Depletion on the four natural resource assets, assuming that 60,000 tons of silver ore, 1,25 gold ore, and 82,000 barrels of oil were extracted. (Round all cost estimated to 2 decimal pl dollar amount. Enter depletion expenses in the given order. If no entry is required for a tran required" in the first account field.) View transaction list Journal entry worksheet 1 3 10 5 5 4 8 9 6 7 Record purchase of the Gold Mine for cash. Note: Enter debits before credits. Date General Journal Debit Credit 2/1/Year 2 Record entry Clear entry View general joumal Required B> Required A Required B Required Prepare the journal entries to account for the following: (1) The Year 1 purchases. (2) Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined and 960,000 board fe (3) The Year 2 purchases, (4) Depletion on the four natural resource assets, assuming that 60,000 tons of silver ore, 1,256,000 board gold ore, and 82,000 barrels of oil were extracted. (Round all cost estimated to 2 decimal places and final dollar amount. Enter depletion expenses in the given order. If no entry is required for a transaction/event required in the first account field.) View transaction list Journal entry worksheet 2 3 4 Required A Required B Prepare the journal entries to account for the following: (1) The Year I purchases. (2) Depletion on the Year 1 purchases, assuming that 66,000 tons of silver were mined and 960,000 (3) The Year 2 purchases. (4) Depletion on the four natural resource assets, assuming that 60,000 tons of silver ore, 1,256, 000 gold ore, and 82,000 barrels of oil were extracted. (Round all cost estimated to 2 decimal places dollar amount. Enter depletion expenses in the given order. If no entry is required for a transactie required" in the first account field.) View transaction list Journal entry worksheet 9 10 > 8 View transaction list Journal entry worksheet 5 7 9 10 6 8 2. 3 7 4 5 6 Record depletion expense of the Gold mine. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal ROSTEOA Required B > View transaction list Journal entry worksheet 9 10 > 8 7 6 3 4 5 1 2
