Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,650,000 pine trees that, when mature, can be used for utility poles. Bedford paid $800 per acre for the timberland. The land has a residual value of $107 per acre when all the trees are harvested. During the year, Bedford harvested 180,000 trees. Required: 1. Compute the depletion per tree. Round your answer to the nearest cent and use the rounded value for any following calculations. $ per tree 2. Prepare the journal entry to record the harvesting of the trees. If an amount box does not require an entry, leave it blank. Dec. 31
Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,650,000 pine trees that, when mature, can be used for utility poles. Bedford paid $800 per acre for the timberland. The land has a residual value of $107 per acre when all the trees are harvested. During the year, Bedford harvested 180,000 trees. Required: 1. Compute the depletion per tree. Round your answer to the nearest cent and use the rounded value for any following calculations. $ per tree 2. Prepare the journal entry to record the harvesting of the trees. If an amount box does not require an entry, leave it blank. Dec. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explain with detail. Thank you!
Transcribed Image Text:Bedford Ridge Development purchased a 5,000-acre tract of forested land southern Georgia. The tract contained about 1,650,000 pine trees that, when mature, can be
used for utility poles. Bedford paid $800 per acre for the timberland. The land has a residual value of $107 per acre when all the trees are harvested. During the year,
Bedford harvested 180,000 trees.
Required:
1. Compute the depletion per tree. Round your answer to the nearest cent and use the rounded value for any following calculations.
per tree
2. Prepare the journal entry to record the harvesting of the trees. If an amount box does not require an entry, leave it blank.
Dec. 31
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