Ques. Lakeside Enterprises bought $1,800,000 for a copper mine on January 1, 2022. The business expects having the resources to produce 12,000,000 units of the product. Prepare the journal entry for the month of January to record the depletion expense assuming.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Ques. Lakeside Enterprises bought $1,800,000 for a copper mine on January 1, 2022. The business expects having the resources to produce 12,000,000 units of the product. Prepare the
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