Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $200,000. 1. Prepare the entry(ies) to record the cost of the ore mine. 2. Prepare the year-end adjusting entry if 180,000 tons of ore are mined and sold the first year.

Q: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000…

A: Req-1   Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion…

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: GIVEN   At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000…

Q: [The following information applies to the questions displayed below.) On January 1, Mitzu Company…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Perez Company acquires an ore mine at a cost of $1,680,000. It incurs additional costs of $470,400…

A: The cost of ore mine will include cost of purchase plus cost incurred to access the mine.

Q: [The following Information applies to the questions displayed below.] On January 1, Mitzu Company…

A: The lump sum price paid to acquire various assets can be apportioned on the basis of their fair…

Q: Miller Mining acquired rights to a tract of land with the intent of extracting from the land a…

A: Depletion: It can be defined as a reduction or fall in the value of natural resources being used in…

Q: A new year had begun, JK Company, a mining institute, purchased a mineral mine for P56,000,000 with…

A: Depletion refers to the reduction in value. It is the non-cash expense of the business recorded by…

Q: Montana Mining Company pays $3,478,510 for an ore deposit containing 1,560,000 tons. The company…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: Lets understand the basics. Depletion needs to calculate when there is extraction of mineral…

Q: Tamarisk Corporation acquires a coal mine at a cost of $464,000. Intangible development costs total…

A: Depletion expense = (Cost - Salvage value) * coal extracted / Total coal estimated to be available =…

Q: Novak Corporation acquires a coal mine at a cost of $ 831,000. Intangible development costs total $…

A: Total Cost of mine = Total purchase price + Development costs + restoration costs =…

Q: Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Q: Sandhill Company purchases equipment on January 1, Year 1, at a cost of $271,000. The asset is…

A: Straight line method of depreciation is a method which allocates equal amount of depreciation over…

Q: Pina Colada Corporation acquires a coal mine at a cost of $ 863,800. Intangible development costs…

A: Solution:- Calculation of Depletion note per ton as follows;- =($863,800+$221,000+$93,000-$120,000)…

Q: On July 1, 2021, Lambda Company, a calendar year entity purchased the rights to a mine. The total…

A: Cost of right = P14,000,000 - P2,000,000 = P12,000,000 Reserves used during the year = 25,000 tons x…

Q: Waterway Corporation acquires a coal mine at a cost of $ 476,000. Intangible development costs total…

A: Depletion: It is often defined as a fall in the value of a natural resource because of its…

Q: Moon Ltd acquired a plant for the cost of $58,000. It is expected that the plant will continue to be…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Perez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200…

A: Depletion is charged to natural resources as depreciation is charged to fixed assets.

Q: On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Depreciation is charged to record reduction in value of asset over the period of time.

Q: (The following information applies to the questions displayed below.] On January 1, Mitzu Company…

A: The journal keeps the record of day to day transactions of the business. The lump - sum paid for…

Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…

A: The acquisition cost of fixed assets is apportioned to different assets on the basis of percentage…

Q: Vaughn Company purchased a machine on July 1, 2021, for $32,200. Vaughn paid $230 in title fees and…

A: DEPRECIATION BASE IS THE AMOUNT OF A FIXED ASSET'S COST THAT CAN BE DEPRECIATED OVER TIME . THE…

Q: On January 2, 2022, Lauren Corporation purchased factory equipment for $850,000. In addition, it…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: [The following information applies to the questions displayed below.] Onslow Company purchased a…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: On January 1, ProTech Co. pays a lump-sum amount of $1,550,000 for land, Building A, Building B, and…

A:

Q: During the current year, Sacrosanct Company purchased a second-hand machine at a price of…

A: Capitalized costs are depreciated or amortized over time instead of being expensed immediately. The…

Q: Castle Company purchased land containing an estimated 2.5 million tons of ore for a cost of…

A: Depletion charge per ton = (Cost of land containing ore - Cost of land without ore) / Estimated tons…

Q: Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for…

A: According to IAS 16 ( Property, Plant and Equipment ) any items of fixed asset can be capitalized if…

Q: Questions: What is the depletion for 2020? * What is the depreciation for 2020? *

A: Tangible assets are depreciated where as intangible assets/ rights are depleted over the useful…

Q: Martin Company purchases a machine at the beginning of the year at a cost of $126,000. The machine…

A: Depreciation rate  = 2/useful life  =2/4 =0.5 Or 50%

Q: Pronghorn Corporation acquires a coal mine at a cost of $484,000. Intangible development costs total…

A:

Q: Perez Company acquires an ore mine at a cost of $2,660,000. It incurs additional costs of $744,800…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4…

A: Since there are multiple sub parts in the question, answer will be given for first three sub parts…

Q: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Q: A company acquires a zinc mine at a cost of $750,000 on January 1. At that same time, it incurs…

A:

Q: Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company…

A:

Q: At the beginning of the current year, Nili company purchased a coal mine for 30,000,000.  Removable…

A: The depletion expense is charged on coal mine as reduction in value of mine with coal removed.

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and…

A: Journal entries ae used to record a business transactions for the first time in the accounting…

Q: Billings Corporation acquires a coal mine at a cost of $2,000,000. Intangible development costs…

A: Depletion cost per ton = (Cost of the Coal mine - Residual value) / Estimated quantity of coal…

Q: Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated…

A: Depletion is an accounting concept similar to depreciation, but its uses are in industries that…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total…

A: The question is based on the concept of Journal Entry.

Q: Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck…

A: Depreciation = 790,000 -60000/10  = 73000 SLM rate = 1/10 = 10% Income StatementDepreciation…

Q: n July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Solutions: 1) Depletion is charged in books in order to record reduction in value of natural…

Q: West Company purchased two machines for P1,000,000 each at the beginning of current year. The…

A: The Research and development expenses include the expense incurred on the research department.

Q: . Calculate annual depreciation expense for the first four years. $fill in the blank…

A:

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation It  is a systematic allocation of  the cost of an asset which  is used in a business.…

Q: On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain…

A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.

Q: At the beginning of current year, Nilli company purchased a coal mine for P30,000,000. Removable…

A: All natural resources that are being acquired by the business loses their value over the period of…

Q: On July 1, 2020, FREESIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000…

A: Depletion is charged in books in order to record reduction in value of natural resources over the…