Assignment 1_ Liabilities

Please answer number 40

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shobha

Answer the required part: a. Entries to record the purchase of the land and other costs related to the mining activities in the year 2020. b. Entries to record the depletion expense for the years 2021 and 2022. Please complete your answers. Thank you!

Complete the Depletion on December 31,2021

Company A obtained the rights to operate a coal mine and started its operations on January 1, 2025. A the coal is extracted in 4 years, Company A is obligated to restore the land to its original condition. The company's controller has provided the following three cash flow possibilities for the restoration costs: Probability Cash Flow $1,000,000 10% 1,400,000 60% 1,800,000 30% Company A's credit-adjusted risk-free rate of interest is 6%, and its fiscal year ends on December 31. much accretion expense will Company A report in its 2026 income statement?

Please explain it properly

Just need help with part B

Current Attempt in Progress On March 1, 2022, Sunland Company acquired real estate, on which it planned to construct a small office building, by paying $80,500 in cash. An old warehouse on the property was demolished at a cost of $9,700; the salvaged materials were sold for $2,600. Additional expenditures before construction began included $1,550 attorney's fee for work concerning the land purchase, $5,100 real estate broker's fee, $7,550 architect's fee, and $13,550 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land 2$ e Textbook and Media List of Accounts Attempts: unlimited Submit Answer Save for Later

Question: Explain to Alice how Hazelton would account for the restoration if the restoration costs differed from the recorded liability in three years. By way of explanation, prepare the journal entry to record the payment of the retirement obligation in three years assuming that the actual restoration costs were $4.7 million.

Compute the Depreciation on December 31, 2021

Current Attempt in Progress On March 1, 2022, Martinez Company acquired real estate on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $1.500 attorney's fee for work concerning the land purchase, $4,600 real estate broker's fee, $7,100 architect's fee, and $13,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of land $

Just need help with part C

Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $600,000. Oil Products expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $75,000 to dismantle the depot and remove the tanks at the end of the depot’s useful life. Instructions a.   Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2020, is $41,879. b.   Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Oil Products uses straight-line depreciation; the estimated salvage value for the depot is zero. c.   On December 31, 2029, Oil Products pays a demolition firm to dismantle the depot and remove the tanks at a price of $80,000. Prepare the…

Current Attempt in Progress Blossom Department Store determines it will cost $107,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Blossom estimates the fair value of the obligation at December 31, 2025, is $93,000. Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit

Can someone help fill out the last part of this question

Subject: acounting

Vaibhav

Compute the Carrying Amount of Other Asset on December 31, 2022

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Makati Inc. acquires a building on February 1, 2020 at a cost of 5,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of 500,000. Question 1. What is the journal entry to record the purchase of building?

On January 1", 2019, ABC Inc. purchased a copper mine for $400,000. The company is required by provincial law to restore the land on which the mine is located to its initial condition at the end of the mine's ten year useful life. Restoration costs are estimated to be $35,000. ABC is subject to an interest rate of 5%. ABC Inc uses straight line deprecation and follows IFRS. Required Prepare the journal entries required on January 1st and December 31st, 2019 and the journal entry for December 31, 2020. Round all entries to the nearest dollar.

DMH Industries Limited purchased a strip mine for cash on April 1, 2023 at a cost of $5,787,000. DMH expects to operate the mine for 10 years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $477,000 to do this at the end of the mine's useful life. The company's year-end is December 31, and DMH follows ASPE. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entry to record the purchase of the mine and to record the asset retirement obligation for the mine on April 1, 2023. Based on the effective interest rate of 5%, the present value of the asset retirement obligation (i.e., its fair value) on the date of acquisition is $292,837. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Date Account…

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Required information Skip to question [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,016,000 $2,808,000 $2,613,600 Estimated costs to complete as of year-end 5, 184,000 2,376, 000 0 Billings during the year 2, 180,000 2,644,000 5, 176,000 Cash collections during the year 1,890,000 2,500,000 5,610,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2-c. In the journal below, complete the…

Problem J:  On January 1, 2021, the Reddick Company purchased a mining right for P30,000,000. The mine's  recoverable ore reserves are estimated to be 4,000,000 tons.  Following the extraction of all ore, the company will be obligated by law to return the land to its  original state. The present value of the restoration cost is P2,000,000. The company estimated that  the property may be sold for P5,000,000. At a cost of P6,000,000, roads were built and other  development costs were invested to aid in the extraction and transportation of the mined ore in  early 2021. 200,000 tons of ore were extracted and sold in 2021.  A new study conducted by a new mining engineer on December 31, 2022, revealed that 5,000,000  tons of ore were available for mining. 225,000 tons of ore were mined and sold in 2022.   How much depletion expense should be recognized in 2022?

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Required information Skip to question [The following information applies to the questions displayed below.] In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,059, 000 $ 2,627,000 $ 2,655,400 Estimated costs to complete as of year - end 5, 041, 000 2,414, 000 0 Billings during the year 2, 190, 000 2, 496,000 5, 314,000 Cash collections during the year 1,895,000 2,400,000 5, 705, 000 Westgate recognizes revenue over time according to percentage of completion. 2 - a. In the journal below, complete the necessary journal entries for the year 2024 (credit "Cash, Materials, etc." for construction costs incurred). 2- b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs incurred). 2- c. In the journal…

Exercise 10-26 (Algo) Research and development [LO10-8] In 2021, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Acquisition of equipment Testing and modification of the prototype Legal and other fees for patent application on the new communication system Legal fees for successful defense of the new patent $2,700,000 820,000 440,000 74,000 340,000 54,000 34,000 $4,462,000 Total The equipment will be used on this and other research projects. Depreciation on the equipment for 2021 is $24,000. During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be…

Natural Resources The Stein Company acquires a copper mine at the cost of $950,000 on January 1. Along with the purchase price Stein pays additional costs associated with development of $75,000. Stein expects the mine will have a salvage value of $125,000 once all the copper has been mined. Best estimates are that the mine contains 300,000 tons of ore. Required a. Prepare the entry to record the purchase of the copper mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 40,000 tons of ore are mined and all the ore is sold. c. Prepare the December 31 year-end adjusting entry to record depletion if 40,000 tons of ore are mined but only 10,000 tons of the ore are sold.   Description   Debit Credit a.                     Purchase of Copper mine       b.                     To record depletion on Copper mine.       c. Copper inventory                             To record depletion on Copper mine.

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: On May 1, 2022, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $10 million. Additional costs and purchases included the following Development costs in preparing the mine $3,200,000; Mining equipment 140,000 Construction of various structures on site 68,000 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $10,000. The structures will be torn down. Geologists estimate that 800,000 tons of ore can be extracted from the mine. After the ore is removed the land will revert back to the state of New Mexico. The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs: Cash Outflow Probability $600,000 30% 700,000 30% 800,000 40% Hecala's credit-adjusted risk-free interest…

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