Question Help %E10-24 (similar to) Cannon Mountain Mining paid $992,000 for the right to extract mineral assets from a 500,000-ton deposit. In addition to the purchase price, Cannon also paid a $1,000 filing fee, a $2,000 license fee to the state of Nevada, and $55,000 for a geological Survey of the property. Because Cannon purchased the rights to the minerals only, it expects the asset to have a zero residual value. During the first year, Cannon removed and sold 20,000 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 year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing (a) the purchase of the minerals (debit Mineral asset). (Do not record payment for any additional costs associated with the minerals. We will do this in entry b.) Date Accounts and Explanation Debit Credit Minerals 992,000 ho Cash 992,000 a To record purchase of mineral rights Journalize (b) the payment of fees and other costs. (Record a single compound journal entry) Date Accounts and Explanation b. Minerals Cash Debit Credit 58,000 58,000 To record payment of costs associated with purchase of minerals. %E10-24 (similar to) Question Help Cannon Mountain Mining paid $992,000 for the right to extract mineral assets from a 500,000 ton deposit. In addition to the purchase price, Cannon also paid a $1,000 filing fee, a $2,000 license fee to the state of Nevada, and $55,000 for a geological Survey of the property. Because Cannon purchased the rights to the minerals only, it expects the asset to have a zero residual value. During the first year, Cannon removed and sold 20,000 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 year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) To record purchase of mineral rights. Joumalize (b) the payment of fees and other costs. (Record a single compound journal entry) Date Accounts and Explanation Debit Credit b Minerals 58,000 Cash 58,000 To record payment of costs associated with purchase of minerals Debit Credit Journalize (c) the depletion for the first year. (Round depletion per ton to the nearest cont.) Date Accounts and Explanation Depletion Expense-Minerals Accumulated Deplotion-Minerals 128000 126000 To record depletion