Velma Corporation purchased a large forest for $12 million on January 1, 2020. The company estimates that 2 million board feet of lumber can be harvested. After 10 years, the company will sell the land and expects it to be worth $3 million. Required a) Prepare the journal entry to record the purchase of the forest. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Jan 1 Forest Cash O Record the purchase of the forest b) Calculate the unit for each BF to be extracted. Round your answers to 2 decimal places. Unit Cost $ per board foot Debit Credit 12000000 12000000 c) During the current year, the company harvested and sold 500,000 board feet. Prepare the journal entry to record the harvesting on December 31, 2020. Round your answers to the nearest whole number. Date Account Title and Explanation Dec 31 Depletion Expense Accumulated Depletion Record depletion for the year Debit Credit 500000 x 500000 x Contact us