A.
Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:
To determine: the depletion rate.
B.
the amount of the depletion expense for the current year.
C.
To journalize: the
Want to see the full answer?
Check out a sample textbook solutionChapter 9 Solutions
Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
- Glacier Mining Co. acquired mineral rights for $494,000,000. The mineral deposit is estimated at 475,000,000 tons. During the current year, 31,500,000 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.arrow_forwardCaldwell Mining Co. acquired mineral rights for $127,500,000. The mineral deposit is estimated at 425,000,000 tons. During the current year, 42,000,000 tons were mined and sold.a. Determine the depletion rate.b. Determine the amount of depletion expense for the current year.c. Journalize the adjusting entry on December 31 to recognize the depletion expense.arrow_forwardHidden Hollow Mining Co. acquired mineral rights for $63,750,000. The mineral deposit is estimated at 75,000,000 tons. During the current year, 17,250,000 tons were mined and sold a. Determine the depletion rate. If required, round your answer to two decimal places. per ton b. Determine the amount of depletion expense for the current year. 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 Accumulated Depletion Accumulated Depreciation Depletion Expense Depreciation Expense Cash Mineral Depositarrow_forward
- Solare Company acquired mineral rights for $60,000,000. The diamond deposit is estimated at 6,000,000 tons. During the current year, 2,300,000 tons were mined and sold.a. Determine the depletion rate.b. Determine the amount of depletion expense for the current year.c. Journalize the adjusting entry to recognize the depletion expense.arrow_forwardHidden Hollow Mining Co. acquired mineral rights for $60,750,000. The mineral deposit is estimated at 45,000,000 tons. During the current year, 13,500,000 tons were mined and sold. 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. 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.arrow_forwardAlaska Mining Co. acquired mineral rights for $28,674,000. The mineral deposit is estimated at 16,200,000 tons. During the current year, 1,710,000 tons were mined and sold. Required: a. Determine the amount of depletion expense for the current year. b. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.arrow_forward
- Solare Company acquired mineral rights for $115,000,000. The diamond deposit is estimated at 11,500,000 tons. During the current year, 4,520,000 tons were mined and sold. a. Determine the depletion rate. per ton b. Determine the amount of depletion expense for the current year. $ c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31arrow_forwardDepletion Glacier Mining Co. acquired mineral rights for $494,000,000. The mineral deposit is estimated at 475,000,000 tons. During the current year, 31,500,000 tons were mined and sold. 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. %24 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. in Dec. 31arrow_forwardHidden Hollow Mining Co. acquired mineral rights for $42,000,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 7,500,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$ per ton b. Determine the amount of depletion expense for the current year.$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31arrow_forward
- 9. Alaska Mining Co. acquired mineral rights for $106,650,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. b. Journalize the adjusting entry on December 31 to recognize the depletion expense.arrow_forward> Solare Company acquired mineral rights for $202,400,000. The diamond deposit is estimated at 18,400,000 tons. During the current year, 3,840,000 tons were mined and sold. a. Determine the depletion rate. per ton b. Determine the amount of depletion expense for the current year. c. Journalize the adjusting entry to recognize the depletion expense. If an amount box does not require an entry, leave it blank. December 31 8 ?arrow_forwardEarth's Treasures Mining Co. acquired mineral rights for $57,750,000. The mineral deposit is estimated at 55,000,000 tons. During the current year, 14,850,000 tons were mined and sold. a. Determine the depletion rate. If required, round your answer to two decimal places.$ per ton b. Determine the amount of depletion expense for the current year.$ c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education