Mid Atlantic Energy Company's balance sheet includes the asset Iron Ore Rights. Mid Atlantic Energy paid 2.3 million cash for the right to work a mine that contained an estimated 192,000 tons of ore. The company paid $62,000 to remove unwanted buildings from the land and $72,000 to prepare the surface for mining. Mid Atlantic Energy also signed a $23,600 note payable to a landscaping company to return the land surface to its original condition after the rights to work the mine end. During the first year, Mid Atlantic Energy removed $32,000 tons of ore, of which it sold 24,500 tons on account for $32 per ton. Operating expenses for the first year totaled $244,000, all paid in cash. In addition, the company accrued income tax at the tax rate of 28%

Requirements 1. Record all of Mid Atlantic Energy's transactions for the year. Round depletion per unit to the closest cent. 2. Prepare the company's single-step income statement for its iron ore operations for the first year. Evaluate the profitability of the company's operation:s 3. What balances should appear from these transactions on Mid Atlantic Energy's balance sheet at the end of its first year of operations? PrintDone Mid Atlantic Energy Company's balanoe sheet includes the asset Iron Ore Rights. Mid Atlantic Energy paid $2.3 millian cash for the right to work a mine that contained an estimated 192,000 tons of are. The compary paid $62,000 to remove urwanted buildings from the land and $72.000 to prepare the surface for mining. Mid Afiantic Energy also signed a $23,600 note payable to a landscaping company to return the land surface to its original condition after the rights to work the mine end. During the first year, Mid Allantie Energy removed 32,000 tons of ore, of which it so 24,500 tons on account for $32 per ton Operating expenses for the f st year totaled $244,000, al paid in cash. In addition, the oompany accred income tax at the tax rate of 28% Read the reqviremerts Requirement 1. Reoord all of Mid Atlantic Energy's transactions for the year. Round depletion per unit to the closest cent. (Reoord debits first, then credits. Exclude explanations from any journal entries. Enter amounts in dollars. Example: Enfer an amount of $1.2 milion 8s $1,200,000. Round depletion per ton to the nearest cent. Round all other amounts to the nearest dollar.) Begin by recording the entry to the acquisition of the lease Pald $2,300,000 cash for the right to wark a mine that contained an est mated 192,000 tons of ore. Journal Entry Date Debit Credit The company paid $62.000 to remove unwanted buildings from the land Journal Entry Date Debit Credit The company paid $72,000 to prepere the surface for mining. Journal Entry Date Accounts Debit Credit Mid Atlantic Energy also signed a $23,600 note payable to a landscaping company to return the land surface to its original condition after the lease ends. Journal Entry Date Accounts Debit Credit During the first year, Mid Atlantic Energy removed 32,000 tons of ore. Record the entry for depletion. Journal Entry Date Accounts Debit Credit Mid Atilantic Energy sold 24,500 tons of ore on account for $32 per ton. Begin by recording the sale. Journal Entry Date Accounts Debit Credit Now record the cost of sales Journal Entry Date Accounts Debit Credit Operating expenses for the first year totaled $244,000, all paid in cash. ournal Entry Debit Credit Date The company accrued income tax at the tax rate of 28% Journal Entry Date Accounts Debit Credit Requirement 2. Prepare the company's single-step income statement for its iron ore operations for the first year. Evaluate the profitability of the company's operations. Start by preparing the income statement. Mid Atlantic Energy Company Income Statement -Iron Ore Operations Year 1 Net income (loss) Evaluate the profitability of the company's operations The iron ore operations were Requirement 3. What balance as shown by the reported on the income statement. these transactions on Mid Atlantic Energy's balance sheet at the not profitable profitable rations as shown by the r from these tran reported on the income statement. Atlantic Energy's balance sheet income loss Requirement 3. What balances should appear trom these transactions on Mid Atlantic Energy's balance sheet at the end of its first year of operations? (For the purpose of this requirement, ignore the effect of the transactions on the cash account)