Sudbury Industries acquired an ore mine at cost of $1,300,000. It was necessary to incur $200,000 to access the mine. The mine is estimated to hold 500000 tonnes of ore and the estimated value of the land after the ore is removed is $150,000. Prepare the entry to record the acquisition
Q: Calculate the Cost of Goods Sold from the following: Per unit cost $3, Opening stock 350 nos,…
A: Cost of goods sold :— It is the total cost of units sold during the period. It is calculated by…
Q: Required: a. What was the break-even volume in number of units last year (Year 1)? b. Assume that…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Q1. In a group of companies Palo Plc acquired 80% of the shares of Pilo Plc on 1 January, 2012 when…
A: The question is based on the concept of Consolidated Financial Statements.While making a…
Q: Irma Company manufactures office furniture. During the most productive month of the year, 3,500…
A: There are various types of cost which may incur in producing the goods or services. On the basis of…
Q: udolpho Corporation makes aluminum fasteners. Among Rudolpho's 19-- manufacturing costs were:…
A: Direct materials are certain raw materials and parts that are included directly in the manufacturing…
Q: Installment Note. On January 1, 20x1, agree to buy equipment in exchange for six payments of $2,000…
A: The note can be defined as the promissory note issued by the borrower making promise that the…
Q: Before Adjustment Salaries Expense 1,600 Given: Accrued Salaries, $125 Read the requirements a.…
A: Adjusting entries :— These are journal entries that are passed at the end of the period to adjust…
Q: Statutory auditor, during the regular audit, from incoming company A to draft letters that will be…
A: Auditor opinions, also known as audit opinions or audit reports, are formal statements issued by…
Q: Listed below are several statements that relate to financial accounting and reporting. Identify the…
A: Accounting concepts, also known as accounting principles or fundamental accounting concepts, are…
Q: During 2020, Macedonia Company is the defendant in a patent infringement lawsuit. The entity's…
A: The provision for lawsuits in accounting is a critical aspect of financial reporting that ensures…
Q: Southwest Inc. would like to exchange an old piece of equipment for a new one. Which of the…
A: Decision making is a process of taking decision between two or more alternative. Decision making is…
Q: In the t-account below, how much is the unknown value? Beg. Balance End. Balance 45,160 79,050…
A: ASSETS ACCOUNTSAssets include Current Assets & Non Current Assets.Current assets are Always…
Q: 1. What is the principal disadvantage of the direct method of reporting cash flows from operating…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: what are the types of opinions expressed in the audit reports by the Certified Auditors
A: The type of opinion expressed in an audit report depends on the auditor's assessment of the…
Q: A garage is installing a new 'bubble-wash' car wash, which requires an initial investment of…
A: The question is based on the concept of Financial Management.Net present value is the difference…
Q: Exercise 2: Flow of Cost - Cost System You are required to compute for the unknowns in the…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model)…
A: Commuter Tour X Total Sales per unit $ 2,516 $ 4,516Less variable cost per unit $…
Q: Job 599 was recently completed. The following data have been recorded on its job cost sheet: Direct…
A: Unit product costs:— It is calculated by dividing total manufacturing cost by number of units. Total…
Q: Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect…
A: Cash flow statement includes:Cash flows from operating activitiesCash flows from investing…
Q: Describe the advantages of using accounting software in modern businesses.
A: Account software is a computer program or operation made to make colorful fiscal and account…
Q: Wallis Company produces circuit boards in a foreign country that imposes a 15 percent VAT. This…
A: VAT to be paid by Wallis company : = Output VAT - Input VAT
Q: Data Section: Depreciation--equipment Direct labor Direct materials inventory, 1/1 Direct materials…
A: The cost of goods manufactured schedule shows the total costs incurred to manufacture the product.…
Q: Gold Nest Company of Guandong, China, makes birdcages for the South China market. The company sells…
A: The journal entries are prepared to record the transactions on regular basis. The overhead is…
Q: On December 31, 2023, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of…
A: EPS is often used in conjunction with other financial metrics and ratios to provide a more…
Q: At the beginning of 2026, Oriole Company had retained earnings of $393000. During the year Oriole…
A: The retained earnings refer to the profits that are not distributed and retained in the business.…
Q: Sean, who is single, received social security benefits of $8,640, dividend income of $12,660, and…
A: A taxable social security benefits is the amount from the social security benefits over which the…
Q: Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must…
A: Journal entries used to record accounting transactions in chronological order under double entry…
Q: HNI Corporation started operations this year. As the year went on, they compiled the following…
A: Job order costing is used when the products are customer specific. Thus each individual job is…
Q: Blossom Co. uses the retail inventory method. The following information is available for the current…
A: The question is based on the concept of Cost Accounting.The conventional retail approach involves…
Q: 1. Prepare a traditional format income statement for August 2. Prepare a contribution format income…
A: The income statement indicates the earnings of a particular business in an accounting period. It can…
Q: a. 19,000 b. (2,100) (1,400) 1,300 (2,100) (650) 9. (150) Bal. 13,900 + C. d. e. Cash + f. Revenues:…
A: Income statement :— It is one of the financial statements that shows profitability, total revenue…
Q: Required information [The following information applies to the questions displayed below.] James…
A: The journal entries are prepared to record the transactions on regular basis. Using net method, the…
Q: George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has…
A: Productivity in an organization refers to the efficiency and effectiveness with which the…
Q: The McLaughlin Corporation declared a 6 percent stock dividend. Construct a pro forma balance sheet…
A: Stock dividend is a form of dividend distributable in the form of shares of the form. Instead of…
Q: Algonac Moldings produces a product made from a metal alloy. Two suppliers, Liebold Metal and Cecil…
A: Lets understand the basics.Cost of handling waste needs to allocate using alternatives. It can be…
Q: Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories.…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate, The unit…
Q: 5. Refer to the original data. By automating, the company could slash its variable expenses in half.…
A: Contribution Margin: It is the difference between the sales and the Variable Cost of the…
Q: Harem Company uses an annual cost formula for overhead of P72,000 + P1.60 for each direct labor hour…
A: Answer:- Overhead meaning:- Costs such as direct labor and materials that cannot be directly…
Q: The company manufactures a single product, cleverly named Product X. The following information is…
A: Cost sheet represents the statement of cost incurred on production of goods consisting of prime…
Q: Statement of owner's equity A-One Travel Service is owned and operated by Kate Duffner. The revenues…
A: Statement of stockholder's equity is a section of balance sheet which shows the performance of the…
Q: Required B Required C Assume the new testing equipment is rented and installed on December 31. What…
A: The Equipment rental account is an expense which is store the year-to-year expenses associated with…
Q: Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50%…
A: A partnership is a form of commercial organization in which two or more people or organizations work…
Q: Echenko Corporation uses a job-order costing system and applies overhead to jobs using a…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: Blakely Industries has the following items: Currency $26,250 Customer checks that have not been…
A: Cash Equivalents are those assets of a company which can e converted in to cash immediately. They…
Q: Question 2 MBI Corp. started the month with $130 of supplies on hand. During the month, the company…
A: Supplies expense :— It is the value of supplies used during the period. It is difference between…
Q: Pop's Burger Haven produces and sells quarter-pound hamburgers. Each burger sells for $3. During…
A: Direct costs are all those costs which indurred in the production of an item such as direct…
Q: Admitting New Partner With Bonus Admitting New Partner With Bonus L. Bowers and V. Lipscomb are…
A: In partnership business a new partner is admitted to the partnership agreement with his capital…
Q: Belden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1,…
A: The equity income generally arise when an entity invest in the common stock of another company. The…
Q: The following account balances were taken from the accounting records of Tyson Company for the year…
A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also Known as Changes in…
Q: Metlock Company began operations on January 1, 2023, and uses the average-cost method of pricing…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.Inventory…
Sudbury Industries acquired an ore mine at cost of $1,300,000. It was necessary to incur $200,000 to access the mine. The mine is estimated to hold 500000 tonnes of ore and the estimated value of the land after the ore is removed is $150,000.
Prepare the entry to record the acquisition
Step by step
Solved in 3 steps with 1 images
- The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.PUP CAF Mining Company purchased a tract of land containing mineral resources for P54,000,000. The purchase contract contained a provision that PUP CAF is required to restore the land suitable for factory use after it has extracted the mineral resource. Geological survey has indicated that 2,400,000 tons of ore could be extracted. The property has an estimated salvage value of P6,000,000 after the ore has been extracted and the land is restored. The estimated cost of restoration and geological survey is P7,200,000 which is the present value at the date of acquisition. Assuming that PUP CAF does not maintain inventories of extracted ores, how much should be charged to depletion expense per ton of extracted mineral ore?Josephine Company acquired a tract of land containing an extractable natural resource. The entity is required by the purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological survey indicated that the recoverable reserves would be 2,000,000 tons and that the extraction will be completed in five years. Relevant cost of information follows: Land 9,000,000 Exploration and development costs 1,000,000 Expected cash flow for restoration costs 1,500,000 Credit- adjusted risk-free interest rate 10% PV of 1 at 10% for 5 periods 0.62 What is the depletion charge per ton of extracted material?
- Roller Inc. purchased a plant and the land on which the plant was located for a total of $300,000 cash. Roller hired an independent appraiser who gave the estimated market values: plant, $220,000; land, $110,000. a. Complete the entry to record the acquisition (show computation). b. Calculate the depreciation expense recorded at the end of the first year for the plant, if Roller uses the straight-line method, and the plant has a useful life of 10 years and $5000 residual value.Perez Company acquires an ore mine at a cost of $3,360,000. It incurs additional costs of $940,800 to access the mine, which is estimated to hold 2,400,000 tons of ore. 250,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $480,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal X Answer is not complete. Calculate the depletion expense from the information given. Note: Round "Depletion per unit" to 3 decimal places. Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense $ 4,300,800 (480,000) $ 2,400,000 1.592 250,000 Depletion Expense General Journal >Perez Company acquires an ore mine at a cost of $1,680,000. It incurs additional costs of $470,400 to access the mine, which is estimated to hold 1,200,000 tons of ore. 190,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $240,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense
- Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. record the cost of the o mine and year end adjusting entryPerez Company acquires an ore mine at a cost of $3,640,000. It incurs additional costs of $1,019,200 to access the mine, which is estimated to hold 2,600,000 tons of ore. 260,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $520,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry. Complete this question by entering your answers in the tabs below. Depletion Expense General Journal Calculate the depletion expense from the information given. (Round "Depletion per unit" to 3 decimal places.) Cost Salvage Amount subject to depletion Total units of capacity Depletion per unit Units extracted and sold in period Depletion expense Complete this question by entering your answers in the tabs below. Depletion Expense…Perez Company acquires an ore mine at a cost of $3,780,000. It incurs additional costs of $1,058,400 to access the mine, which is estimated to hold 2,700,000 tons of ore. 265,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $540,000. Calculate the depletion expense from the information given. 1. & 2. Prepare the entry to record the cost of the ore mine and year-end adjusting entry.
- Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the acquisition, Nathan Jacob's $15,000 to have the property appraised. The following values were determined from the appraisal: land, $125,000; building, $235,000; and equipment, $150,000. Required: 1. What cost should Nathan Jacob’s assign to the land, buildings, and equipment, respectively? 2. Provide the journal entry to record the acquisition on the books of Nathan Jacob’s.the company paid $500,000 to purchase the following: a building with an appraised valued of $200,000 an operating permit valued at $100,000 and ongoing reaserch and development projects valued at $150,00. In addition, it is estimated that the fair value of the order backlog associated with the products manufactured in the building is $100,000; this order backlog is includes as part of the purchase. make the journal entry necessary to revord this cash purchase.Sparkle Company acquired a tract of land containing an extractable mineral resource. Sparkle is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the mineral resource. Geological surveys estimate that the recoverable reserves will be 2,000,000 tons, and that the land will have a value of $1,200,000 after restoration. Relevant cost information follows: Land $9,000,000 Estimated restoration costs 1,800,000 If Sparkle maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material? $Answer?
