Depletion Entries Alaska Mining Co. acquired mineral rights for $26,838,000. The mineral deposit is estimated at 149,100,000 tons. During the current year, 22,350,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Depletion Entries Alaska Mining Co. acquired mineral rights for $26,838,000. The mineral deposit is estimated at 149,100,000 tons. During the current year, 22,350,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 7PA: Using the following information: A. make the December 31 adjusting journal entry for depreciation B....
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Transcribed Image Text:Depletion Entries
Alaska Mining Co. acquired mineral rights for $26,838,000. The mineral deposit is estimated at 149,100,000 tons. During the current year, 22,350,000 tons were mined and sold.
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
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