Please answer the following question Must choose from the following LIST OF ACCOUNTS: Accumulated DepletionAccumulated Depreciation - AutomobilesAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Furniture and FixturesAccumulated Depreciation - MachineryAccumulated Depreciation - VehiclesAccumulated Impairment Losses - BuildingAccumulated Impairment Losses - EquipmentAccumulated Impairment Losses - LandAccumulated Impairment Losses - MachineryAccumulated Impairment Losses - MineAccumulated Impairment Losses - PatentsAccumulated Impairment Losses - Tools and DiesAccumulated Impairment Losses - VehiclesAsset Retirement ObligationBuildingsCashCommon SharesContribution ExpenseCost of Goods SoldDeferred Revenue - Government GrantsDepreciation ExpenseEquipmentFurniture and FixturesGain on Disposal of AutomobilesGain on Disposal of BuildingGain on Disposal of EquipmentGain on Disposal of Furniture and FixturesGain on Disposal of MachineryGain on Disposal of VehiclesGain on Sale of LandInterest ExpenseInterest PavableInventoryInvestment PropertyLandLiability for Site RestorationLoss on Disposal of AutomobilesLoss on Disposal of BuildingLoss on Disposal of EquipmentLoss on Disposal of MachineryLoss on Disposal of VehiclesLoss on ExpropriationLoss on ImpairmentLoss on Sale of LandMachineryMineral ResourcesNo EntryNotes PayableOil PropertyRecovery of Loss from ImpairmentRepairs and Maintenance ExpenseRetained EarningsRevaluation Surplus (OCI)Revenue - Government GrantsRoyalty ExpenseVehicles Prepare the required journal entry, if any, for the total amount that is charged as an expense for 2023 for the cost of minerals soldduring 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to O decimal places,e.g. 5,275.)Account Titles and ExplanationDebitCredit At the beginning of 2023, Sandhill Company, a small private company, acquired a mine for $2,555,000. Of this amount, $140,000 wasallocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found thatapproximately 18 million units of ore appear to be in the mine. Sandhill had $220,000 of development costs for this mine before anyextraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of theminerals have been removed was $65,000. During 2023, 2.6 million units of ore were extracted and 2.00 million of these units weresold.(a)Your answer is correct.Calculate the depletion cost per unit for 2023. (Round answer to 3 decimal places, e.g. 0.120.)(b)Depletion cost per uniteTextbook and MediaList of AccountsYour answer is correct.$Account Titles and ExplanationInventoryPrepare the required journal entry, if any, for the total amount of depletion for 2023. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts. List debit entry before credit entry.)Accumulated Depletion0.15Debit390000Attempts: 1 of 3 usedCredit390000

Cost of Minerals sold = Number of units x Depletion cost per unit Depletion cost per unit = Cost…

Answered: Prepare the required journal entry, if…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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Related questions

Question

Please answer the following question

Must choose from the following LIST OF ACCOUNTS:

Accumulated Depletion

Accumulated Depreciation - Automobiles

Accumulated Depreciation - Buildings

Accumulated Depreciation - Equipment

Accumulated Depreciation - Furniture and Fixtures

Accumulated Depreciation - Machinery

Accumulated Depreciation - Vehicles

Accumulated Impairment Losses - Building

Accumulated Impairment Losses - Equipment

Accumulated Impairment Losses - Land

Accumulated Impairment Losses - Machinery

Accumulated Impairment Losses - Mine

Accumulated Impairment Losses - Patents

Accumulated Impairment Losses - Tools and Dies

Accumulated Impairment Losses - Vehicles

Asset Retirement Obligation

Buildings

Cash

Common Shares

Contribution Expense

Cost of Goods Sold

Deferred Revenue - Government Grants

Depreciation Expense

Equipment

Furniture and Fixtures

Gain on Disposal of Automobiles

Gain on Disposal of Building

Gain on Disposal of Equipment

Gain on Disposal of Furniture and Fixtures

Gain on Disposal of Machinery

Gain on Disposal of Vehicles

Gain on Sale of Land

Interest Expense

Interest Pavable

Inventory

Investment Property

Land

Liability for Site Restoration

Loss on Disposal of Automobiles

Loss on Disposal of Building

Loss on Disposal of Equipment

Loss on Disposal of Machinery

Loss on Disposal of Vehicles

Loss on Expropriation

Loss on Impairment

Loss on Sale of Land

Machinery

Mineral Resources

No Entry

Notes Payable

Oil Property

Recovery of Loss from Impairment

Repairs and Maintenance Expense

Retained Earnings

Revaluation Surplus (OCI)

Revenue - Government Grants

Royalty Expense

Vehicles

Prepare the required journal entry, if any, for the total amount that is charged as an expense for 2023 for the cost of minerals sold
during 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to O decimal places,
e.g. 5,275.)
Account Titles and Explanation
Debit
Credit

At the beginning of 2023, Sandhill Company, a small private company, acquired a mine for $2,555,000. Of this amount, $140,000 was
allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that
approximately 18 million units of ore appear to be in the mine. Sandhill had $220,000 of development costs for this mine before any
extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the
minerals have been removed was $65,000. During 2023, 2.6 million units of ore were extracted and 2.00 million of these units were
sold.
(a)
Your answer is correct.
Calculate the depletion cost per unit for 2023. (Round answer to 3 decimal places, e.g. 0.120.)
(b)
Depletion cost per unit
eTextbook and Media
List of Accounts
Your answer is correct.
$
Account Titles and Explanation
Inventory
Prepare the required journal entry, if any, for the total amount of depletion for 2023. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. List debit entry before credit entry.)
Accumulated Depletion
0.15
Debit
390000
Attempts: 1 of 3 used
Credit
390000

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