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Loon Mountain Mining paid $1,092,600 for the right to extract mineral assets from a 700,000-ton deposit. in addition fo the purchase price, Loon Mountain Mining

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Loon Mountain Mining paid $1,092,600 for the right to extract mineral assets from a 700,000-ton deposit. in addition fo the purchase price, Loon Mountain Mining also paid a $300 filing fee, a $2,100 license foe to the state of Coloredo, and $95,000 for a geological survey of the property. Because Loon Mountain Mining purchased the rights to the minorals only and did not purchase the land, it expects the asset to have zero tesidual value. During the first year, Loon Mountain Mining removed and sold 10,000 tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first yoar. (Record debits firat, then credits. Sploct the explanation on the last line of the joumal entry table.) Loon Mountain Mining paid \$1,092, 600 for the right to extract mineral assets from a 700,000-4on deposit. In addalon to the purchase price, Lcon Mountan Mining alto paid a $300 fling fee, a \$2,100 licanse fee to the state of Colorado, and \$95,000 for a geologicnl suney of the property. Becasise Loon Mountain Miring purchased the rights to the minerals ony and did not purchase the land, it expects the asset to have zero residual value. During the first yoar, Loon Mountain Mining removod and solid 10,000 tons of the minerals. Make joumal entries to record (a) purchase of the minerals (debit Minerals), (b) paryment of fees and other couts, and (c) depletion for the fint year. (Record debits fint, then crodits Select the explanation on the linst line of the joumal entry tablo) Begin by journnliging (a) the purchase of the minerals (debit Mineral asset). (Do not record paryment for asy odditional costs associated with the minerals We will do this in entry b.) To record payment of costs associated with purchase of minerals

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