Question
On July 1, 2021, Windsor Exploration invests $1.43 million in a mine that is estimated to have 828,125 tonnes of ore. The company estimates that
On July 1, 2021, Windsor Exploration invests $1.43 million in a mine that is estimated to have 828,125 tonnes of ore. The company estimates that the property will be sold for $105,000 when production at the mine has ended. During the last six months of 2021, 105,000 tonnes of ore are mined and sold. Windsor has a December 31 fiscal year end.
1. Record the 2021 depletion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round per tonne to 2 decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,276.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31 | enter an account title to record depletion on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record depletion on December 31 | enter a debit amount | enter a credit amount | |
(To record depletion.) |
List of Accounts
2. Show how the mine and any related accounts are reported on the December 31, 2021, income statement.
WINDSOR EXPLORATION Income Statement (Partial) choose the accounting period Quarter Ended December 31, 2021Year Ended December 31, 2021December 31, 2021 | ||
---|---|---|
enter an income statement item | $enter a dollar amount |
List of Accounts
3. Show how the mine and any related accounts are reported on the December 31, 2021, balance sheet.
WINDSOR EXPLORATION Balance Sheet (Partial) choose the accounting period Quarter Ended December 31, 2021Year Ended December 31, 2021December 31, 2021 | |||
---|---|---|---|
Assets | |||
select an opening section name Total Intangible AssetsTotal Stockholders' EquityInvestmentsCurrent LiabilitiesStockholders' EquityTotal Liabilities and Stockholders' EquityTotal Current LiabilitiesTotal AssetsIntangible AssetsTotal LiabilitiesTotal Current AssetsProperty, Plant and EquipmentLong-Term DebtTotal Property, Plant and EquipmentCurrent Assets | |||
enter a balance sheet item | $enter a dollar amount | ||
select between addition and deduction AddLess:enter a balance sheet item | enter a dollar amount | $enter a subtotal of the two previous amounts |
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