Colorado Mining paid $504,000 to acquire a mine with 42,000 tons of coal reserves. The financial statements model in Required B reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 22,050 tons of coal in year 1 and 18,900 tons in year 2. Required: a. Compute the depletion charge per ton. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Note: In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Round final answers to the nearest whole dollar amount. Assets Cash 702,400 + + Coal Reserves Depletion for Year 1 Depletion for Year 2 Balance Sheet Liabilities + COLORADO MINING Horizontal Statements Model Stockholders' Equity Retained Earnings Common Stock 702,400 Income Statement Revenue Expenses Net Income Statement of Cash Flows Show less A
Colorado Mining paid $504,000 to acquire a mine with 42,000 tons of coal reserves. The financial statements model in Required B reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 22,050 tons of coal in year 1 and 18,900 tons in year 2. Required: a. Compute the depletion charge per ton. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Note: In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Round final answers to the nearest whole dollar amount. Assets Cash 702,400 + + Coal Reserves Depletion for Year 1 Depletion for Year 2 Balance Sheet Liabilities + COLORADO MINING Horizontal Statements Model Stockholders' Equity Retained Earnings Common Stock 702,400 Income Statement Revenue Expenses Net Income Statement of Cash Flows Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:Colorado Mining paid $504,000 to acquire a mine with 42,000 tons of coal reserves. The financial statements model in Required B
reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 22,050 tons of coal in
year 1 and 18,900 tons in year 2.
Required:
a. Compute the depletion charge per ton.
b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.
Complete this question by entering your answers in the tabs below.
Required A Required B
Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.
Note: In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Enter any
decreases to account balances and cash outflows with a minus sign. Not all cells require input. Round final answers to the nearest whole dollar amount.
Assets
Cash +
702,400 +
Coal
Reserves
Depletion for Year 1
Depletion for Year 2
Balance Sheet
=Liabilities
=
+
+
+
COLORADO MINING
Horizontal Statements Model
Stockholders' Equity
Retained
Earnings
Common
Stock
702,400+
Income Statement
Revenue
Expenses =
Net
Income
Statement of Cash
Flows
Show less A
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