C14

.docx

School

College of Southern Nevada *

*We aren’t endorsed by this school

Course

201

Subject

Accounting

Date

Jan 9, 2024

Type

docx

Pages

1

Uploaded by totytheproducer

Report
C14 – Natural Resources – TBS FCO 0199 Problem/Solution Gear Inc. has significant investments in natural resources. Accounting for natural resources involves several accounts and requires journal entries throughout the year. Two acceptable methods of accounting for natural resource exploration costs are (1) the successful efforts method (SE) and (2) the full costing method (FC). For each of the following transactions listed in the first column, specify the account or accounts to be debited. Answer separately for each method (SE or FC). Transaction or event SE FC 1. Purchase mineral rights Natural resources Natural resources 2. Explore for resource Natural resources/Exploration expense Natural resources 3. Develop the site Natural resources Natural resources 4. Recognize asset retirement obligation Natural resources Natural resources 5. Extract the resource Inventory of resource Inventory of resource 6. Recognize depletion Inventory of resource Inventory of resource 7. Sell the resource Cost of goods sold Cost of goods sold
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help