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signment - Chapter 86 Saved Fannety Company engages in the exploration and development of many types of natural resources. In the last two years, the

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signment - Chapter 86 Saved Fannety Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities January 1, Year purchased for 1215,000 silver she stated to contin 808,600 tons of silver ore. July 1, Yar 1 Purchase for 52,000,000 cash atract of land containing taber estimated to yield 1,000,000 board feat of Luther. At the time of purchase, the land dan aparat set of $15,000. February 1, Year 2 Purchased for $787,000 gold mine estimated to yield 29,200 tons of gold-vained ore. September 1, Year 1 Purchased 11 reserves for $78,000. The reserves were estimated to contain 25,000 barrels of on, of which 17,000 would be prestable to pump. Required a. Prepare the journal entries to account for the following terms. Assume all purchase transactions were made with cash (1) The Year purchases (2) Depletion on the Year purchases, assuming that 67,000 tons of siver were mined and 961,000 board feet of lumber were cut (3) The Year 2 purchases (4) Depletion on the four natural resource assets, assuming that 63,000 tons of silver ore, 199,000 board feet of lumber 9,500 Tons of gold ore, and 77,000 barrels of oil were extracted b. Prepare the portion of the December 31, Year 2. balance sheet that reports natural resources c. Assume that in Year 3 the estimates changed to reflect only 62.900 tons of gold ore remaining Prepare the depletion journal entry in e 3to account for the extraction of 44,030 tons of gold ore. Complete this question litering your answers in the tabs below. Hec Drabanthermans Dec Year 2 balance sheet that reports natural youth Required A Required B Required c Prepare the portion of the December 31, Yeaf 2, balance sheet that reports na nearest dollar amount.) Natural Resources Silver mine (less depletion) Timber (less depletion) Gold mine (less depletion) Oil reserves (less depletion) Total natural resources 0 Land Total $

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