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Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for an ore deposit containing 1,551,000 tons. The company installs machinery in the mine costing $211,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 184,500 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 answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit > View general journal Record entry Clear entry

Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for an ore deposit containing 1,551,000 tons. The company installs machinery in the mine costing $211,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 184,500 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 answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit > View general journal Record entry Clear entry

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for an ore deposit containing 1,551,000 tons. The company installs machinery in the mine costing $211,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 184,500 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 answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit > View general journal Record entry Clear entry
Transcribed Image Text:Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for an ore deposit containing 1,551,000 tons. The company installs machinery in the mine costing $211,500. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 184,500 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 answers to the nearest whole number. View transaction list Journal entry worksheet < 1 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit > View general journal Record entry Clear entry
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