Montana Mining Company pays $3,478,510 for an ore deposit containing 1,560,000 tons. The company installs machinery in the mine costing $239,200. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 169,200 tons of ore during the year. Prepare the December 31 year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. Note: Do not round intermediate calculations. Round your final

Montana Mining Company pays $3,478,510 for an ore deposit containing 1,560,000 tons. The company installs machinery in the mine costing $239,200. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 169,200 tons of ore during the year. Prepare the December 31 year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. Note: Do not round intermediate calculations. Round your final

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7PA: Using the following information: A. make the December 31 adjusting journal entry for depreciation B....

See similar textbooks

Similar questions

Complete the work sheet for Ramey Company, dated December 31, 20, through the adjusted trial balance using the following adjustment information: a. Expired or used-up insurance, 460. b. Depreciation expense on equipment, 870. (Remember to credit the Accumulated Depreciation account for equipment, not Equipment.) c. Wages accrued or earned since the last payday, 120 (owed and to be paid on the next payday). d. Supplies remaining, 80.
Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
1. The adjusting entry to correct the entry made on trade-in of Machine 3 will include aa. Debit to Accumulated Depreciation P67,500b. Debit to Loss on Exchange P58,500c. Credit to Production Machine P67,500d. Credit to Cash P192,000 2. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,250 3. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750
Adjustment for Depreciation of Asset On December 1, delivery equipment was purchased for $7,200. The delivery equipment has an estimated useful life of four years (48 months) and no salvage value. Using the straight-line depreciation method, analyze the necessary adjusting entry as of December 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. (Income Statement)Depr. Expense—Delivery Equipment Adj. fill in the blank 2bfe8602202f07b_1 (Balance Sheet)Accum. Depr.—Delivery Equipment Adj. fill in the blank 2bfe8602202f07b_2 Page: DATE ACCOUNT TITLE DOC.NO. POST.REF. DEBIT CREDIT 1 20--Dec. 31 fill in the blank a9d99cf16046fab_2 fill in the blank a9d99cf16046fab_3 1 2 fill in the blank a9d99cf16046fab_5 fill in the blank a9d99cf16046fab_6 2
A. Make the December 31 adjusting journal entry for depreciation.B. Determine the net book value (NBV) of the asset on December 31.• Cost of asset, $195,000• Accumulated depreciation, beginning of year, $26,000• Current year depreciation, $13,000
Adjustment for Depreciation The estimated amount of depreciation on equipment for the current year is $2,630. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank.
The estimated amount of depreciation on equipment for the current year is $6,180. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank.
Hi there Please help with the following accounting question Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end adjustment entries for depreciation. Round off to the nearest Rand Narrations are not required The format has been provided ??
Glacier Mining Co. acquired mineral rights for $311,250,000. The mineral deposit is estimated at 415,000,000 tons. During the current year, 40,479,000 tons were mined and sold. A. Determine the depletion rate. Round your answer to two decimal places. B. Determine the amount of depletion expense for the current year. C. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles. A. Determine the depletion rate. Round your answer to two decimal places. per ton B. Determine the amount of depletion expense for the current year.
The balance in the equipment account before adjustment on December 31, 2007 is $60,000 and the balance of accumulated depreciation on December 31, 2007 is $24,000. The adjustment amount for depreciation for the year is $12,000. What account should be credited in the journal (2) and for what amount to record the adjusting entry to record this depreciation based on this information? JOURNAL Page 25 date description p.ref. debit CREDIT Adjusting Entries 12/31 (1) ? (2) ? Group of answer choices Depreciation Expense $12,000 Equipment $12,000 Accumulated Depreciation $12,000 Depreciation Expense $36,000
Adjustment for Depreciation The estimated amount of depreciation on equipment for the current year is $6,880. Journalize the adjusting entry to record the depreciation. fill in the blank 2
Down Deep Mining Co. acquired mineral rights for $63,750,000. The mineral deposit is estimated at 75,000,000 tons. During the current year, 18,750,000 tons were mined and sold. Question Content Area a. Determine the depletion rate. If required, round your answer to two decimal places. b. Determine the amount of depletion expense for the current year. Question Content Area c. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select -