Salter Mining Company purchased the Northern Tier Mine for $75million cash. The mine was estimated to contain 6.25 million tonsof ore and to have a residual value of $4.6 million.
During the first year of mining operations at the Northern TierMine, 90,000 tons of ore were mined, of which 12,000 tons weresold.
Salter Mining Company purchased the Northern Tier Mine for $75million cash. The mine was estimated to contain 6.25 million tonsof ore and to have a residual value of $4.6 million.
During the first year of mining operations at the Northern TierMine, 90,000 tons of ore were mined, of which 12,000 tons weresold.
a.
Prepare a journal entry to record depletion during the year.(Round your intermediate calculations to two decimal places. If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)
b.
Show how the Northern Tier Mine, and its accumulated depletion,would appear in Salter Mining Company's balance sheet after thefirst year of operations. (Round your intermediate calculations totwo decimal places. Amounts to be deducted should be indicated by aminus sign.)
Salter Mining Company purchased the Northern Tier Mine for $75million cash. The mine was estimated to contain 6.25 million tonsof ore and to have a residual value of $4.6 million.
During the first year of mining operations at the Northern TierMine, 90,000 tons of ore were mined, of which 12,000 tons weresold.
Salter Mining Company purchased the Northern Tier Mine for $75million cash. The mine was estimated to contain 6.25 million tonsof ore and to have a residual value of $4.6 million.
During the first year of mining operations at the Northern TierMine, 90,000 tons of ore were mined, of which 12,000 tons weresold.
a.
Prepare a journal entry to record depletion during the year.(Round your intermediate calculations to two decimal places. If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)
b.
Show how the Northern Tier Mine, and its accumulated depletion,would appear in Salter Mining Company's balance sheet after thefirst year of operations. (Round your intermediate calculations totwo decimal places. Amounts to be deducted should be indicated by aminus sign.)
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