Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Asset Mineral rights Equipment Truck View transaction list Journal entry worksheet 1 Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights. Date of Purchase Mar. 1/23 Mar. 1/23 Mar. 1/23 Date Dec 31, 2023 Record the amortization on the mineral rights. Note: Enter debits before credits. Record entry 23 View transaction list Date Oct 31, 2028 Cost $ 62,480 244,800 95,480 General Journal Amortization expense, mineral rights Accumulated amortization, mineral rights Clear entry Journal entry worksheet < 1 2 3 Record the disposal of the equipment. Note: Enter debits before credits. Est. Residual se 0 0 2. Assume the mine was closed on October 31, 2026, and the assets were scrapped. Record the disposal of the assets. General Journal Est. Life 4 yrs 4 yrs 4 yrs Debit Credit View general journal Debit Credit
Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Asset Mineral rights Equipment Truck View transaction list Journal entry worksheet 1 Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles. Required: 1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights. Date of Purchase Mar. 1/23 Mar. 1/23 Mar. 1/23 Date Dec 31, 2023 Record the amortization on the mineral rights. Note: Enter debits before credits. Record entry 23 View transaction list Date Oct 31, 2028 Cost $ 62,480 244,800 95,480 General Journal Amortization expense, mineral rights Accumulated amortization, mineral rights Clear entry Journal entry worksheet < 1 2 3 Record the disposal of the equipment. Note: Enter debits before credits. Est. Residual se 0 0 2. Assume the mine was closed on October 31, 2026, and the assets were scrapped. Record the disposal of the assets. General Journal Est. Life 4 yrs 4 yrs 4 yrs Debit Credit View general journal Debit Credit
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 4AP
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Transcribed Image Text:Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining
operations at the site. Details of the mining assets follow:
Asset
Mineral rights
Equipment
Truck
View transaction list
Journal entry worksheet
1
Copper's year-end is December 31 and it uses the straight-line method for all mining assets including Intangibles.
Required:
1. Record amortization and depreciation at December 31, 2023, on the mining assets, including the mineral rights.
Date of Purchase
Mar. 1/23
Mar. 1/23
Mar. 1/23
Record the amortization on the mineral rights.
Note: Enter debits before credits.
Date
Dec 31, 2023
Record entry
View transaction list
Cost
$ 62,480
244,800
95,400
General Journal
Amortization expense, mineral rights
Accumulated amortization, mineral rights
Date
Oct 31, 2026
Clear entry
Journal entry worksheet
1 23
Record the disposal of the equipment.
Note: Enter debits before credits.
Est.
Residual
$0
0
દા
Est. Life
4 yrs
4 yrs
4 yrs
General Journal
2. Assume the mine was closed on October 31, 2026, and the assets were scrapped. Record the disposal of the assets.
Debit
Credit
Debit
View general Journal
>
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning