SkysongTimber Inc., a small private company that follows ASPE, owns13,000hectares of timberland purchased in 2007 at a cost of $1,300per hectare. At the time of purchase, the land without the timber was valued at $500per hectare. In 2008,Skysongbuilt fire lanes and roads, with a physical life of30years, at a cost of $84,000and separately capitalized these costs. Every year,Skysongsprays to prevent disease at a cost of $3,000per year and spends $10,000to maintain the fire lanes and roads. During 2009,Skysongselectively logged and sold650,000cubic metres of the estimated3.25million cubic metres of timber. In 2010,Skysongplanted new seedlings to replace the cut trees at a cost of $190,000.

Q1: Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2010.

Q2: Provide the journal entries to record the depletion charged to inventory (and subsequently to cost of goods sold) for the year.

Q3: Skysonghas not logged since 2009. Assume thatSkysonglogged900,000cubic metres of timber in 2020, of which60% was sold in 2020 and the remainder sold in 2021. The timber cruiser (the appraiser) had estimated a total resource of5million cubic metres. Determine the cost of timber sold that relates to the depletion for 2020 and 2021.

Q4: Provide the journal entries to account for the cost of timber produced in 2020 and subsequently sold in 2020 and 2021.

Q5: Prepare the necessary journal entry to show howSkysongwould account for the maintenance costs of the fire lanes and roads and the spraying of the timberland

Skysong Timber Inc., a small private company that follows ASPE, owns 13,000 hectares of timberland purchased in 2007 at a cost of $1,300 per hectare. At the time of purchase, the land without the timber was valued at $500 per hectare. In 2008, Skysong built fire lanes and roads, with a physical life of 30 years, at a cost of $84,000 and separately capitalized these costs. Every year, Skysong sprays to prevent disease at a cost of $3,000 per year and spends $10,000 to maintain the fire lanes and roads. During 2009, Skysong selectively logged and sold 650,000 cubic metres of the estimated 3.25 million cubic metres of timber. In 2010, Skysong planted new seedlings to replace the cut trees at a cost of $190,000. Your Answer Correct Answer (Used) * Your answer is incorrect. Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2010. Depletion charge $ Provide the journal entries to record the depletion charged to inventory (and subsequently to cost of goods sold) for the year. (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 O for the amounts. Round depletion rate to 2 decimal places, e.g. 15.75 and final answer to O decimal places, e.g. 1,525.) Account Titles and Explanation Debit Credit (To record depletion) (To record cost of goods sold) e Textbook and Media List of Accounts here to search X w 11:03 PM 2020-06-13