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.

On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2016, 240,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2016. 2. Discuss the accounting treatment of the depletion calculated in requirement 1.

White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving?   (b) What is the accumulated depreciation (in $) after the third year?   (c) What is the book value of the shelving (in $) after the fifth year?

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On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4 million tons of recoverable ore. It installs and pays for machinery costing $400,000 on March 21. The company removes and sells 254,000 tons of ore during its first nine months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine’s depletion as the machinery will be abandoned after the ore is mined. Required Prepare entries to record (a) the purchase of the land, (b) the cost and installation of the machinery, (c) the first nine months’ depletion assuming the land has a net salvage value of zero after the ore is mined, and (d) the first nine months’ depreciation on the machinery. Analysis Component (e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine?

A company pays $813,200 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $64,200 cash to access the mine, which is estimated to hold 107,000 tons of iron. The estimated value of the land after the iron is removed is $21,400. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 22,100 tons of iron are mined but only 19,400 tons are sold this first year. View transaction list Journal entry worksheet 1 > Prepare the January 1 entry to record the cost of the iron mine. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Iron Mine 877,400 Cash 877,400 Record entry Clear entry View general journal G Search or type URL < ** #3 $4 2 3 6 7 8. W T. Y U G H. J K L V F. C3 DI

10. On January 1, 2021, Homestead Designs purchased some equipment for $19,600. The anticipated life of the equipment was five years and residual value was estimated to be $3,100. The machine was expected to produce 600,000 units. In January, 25,000 units were produced and production was doubled in February. The company uses the activity depreciation method. What is the amount of depreciation expense for the month of February? a. $637.50 b. $1,210.00 c. $2,354.00 d. $1,375.00

A company pays $790,400 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $62,400 cash to access the mine, which is estimated to hold 104,000 tons of iron. The estimated value of the land after the iron is removed is $20,800. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 21,200 tons of iron are mined but only 18,800 tons are sold this first year. View transaction list Journal entry worksheet 1 2 Prepare the January 1 entry to record the cost of the iron mine. Note: Enter debits before credits. Date January 01 General Journal Debit Credit View general journal Record entry Clear entry >

Leroy Mining Company purchased land containing an estimated 10,000,000 tons of ore for a cost of $750,000. The land without the ore is estimated to be worth $150,000 (the residual value). The company expects that all the usable ore can be mined in eight years. During its first year of operation, the company mined 1,000,000 tons of ore and at the end of the year had an inventory of 200,000 tons Determine the following amounts for the first year: (a) depletion charge per ton; (b) depletion expense for year;