A company pays $881,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,600 cash to access the mine, which is estimated to hold 116,000 tons of iron. The estimated value of the land after the iron is removed is $23,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 24,800 tons of iron are mined but only 21,200 tons are sold this first year. View transaction list Journal entry worksheet < 1 2 Prepare the January 1 entry to record the cost of the iron mine. >
A company pays $881,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,600 cash to access the mine, which is estimated to hold 116,000 tons of iron. The estimated value of the land after the iron is removed is $23,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 24,800 tons of iron are mined but only 21,200 tons are sold this first year. View transaction list Journal entry worksheet < 1 2 Prepare the January 1 entry to record the cost of the iron mine. >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...
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