Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Montana Mining Co. pays $4,351,660 for an ore deposit containing 1.453,000 tons. The company installs machinery in the mine costing $230,200, which will be abandoned

image text in transcribed
image text in transcribed
image text in transcribed
Montana Mining Co. pays $4,351,660 for an ore deposit containing 1.453,000 tons. The company installs machinery in the mine costing $230,200, which will be abandoned when the ore is completely mined. Montana mines and sells 189,500 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date Debit Credit Dec 31 General Journal Depletion expense Mineral deposit Accumulated depletion-Mineral deposit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of the mining machinery. Note: Enter debits before credits. Dato General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions