ACCT 102Please show ur calculations, thank you! Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to contain 6.82 million tons of oreand to have a residual value of $9 million.During the first year of mining operations at the Northern Tier Mine, 80,000 tons of ore were mined, of which 16,000 tons were sold.a. Prepare a journal entry to record depletion during the year.b. Show how the Northern Tier, and its accumulated depletion, would appear in Salter Mining Co. balance sheet after the first year ofoperations.Complete this question by entering your answers in the tabs below.Required ARequired BShow how the Northan Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheetafter the first year of operations. (Round your intermediate calculations to two decimal places. Amounts to be deductedshould be indicated by a minus sign.)Salter Mining CompanyBalance Sheet (Partial)Property, plant, & equipment< Required ARequired B > Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to contain 6.82 million tons of oreand to have a residual value of $9 million.During the first year of mining operations at the Northern Tier Mine, 80,000 tons of ore were mined, of which 16,000 tons were sold.a. Prepare a journal entry to record depletion during the year.b. Show how the Northern Tier, and its accumulated depletion, would appear in Salter Mining Co. balance sheet after the first year ofoperations.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a journal entry to record depletion during the year. (Round. your intermediate calculations to two decimal places. If no entry isrequired for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet1.Record the depletion on the Northern Tier Mine.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1

Journal entry - It refers to the process where the business transactions are recorded in the books…

Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to contain 6.82 million tons of ore and to have a residual value of $9 million. During the first year of mining operations at the Northern Tier Mine, 80,000 tons of ore were mined, of which 16,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier, and its accumulated depletion, would appear in Salter Mining Co. balance sheet after the first year of operations. Complete this question by entering your answers in the tabs below. Required A Required B Show how the Northan Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. (Round your intermediate calculations to two decimal places. Amounts to be deducted should be indicated by a minus sign.) Salter Mining Company Balance Sheet (Partial) Property, plant, & equipment

Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to contain 6.82 million tons of ore and to have a residual value of $9 million. During the first year of mining operations at the Northern Tier Mine, 80,000 tons of ore were mined, of which 16,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier, and its accumulated depletion, would appear in Salter Mining Co. balance sheet after the first year of operations. Complete this question by entering your answers in the tabs below. Required A Required B Show how the Northan Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. (Round your intermediate calculations to two decimal places. Amounts to be deducted should be indicated by a minus sign.) Salter Mining Company Balance Sheet (Partial) Property, plant, & equipment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 6PA: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one...

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Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are two million tons of ore within the mine. Underwoods paid $46,000,000 for the rights and expects to harvest the ore over the next fifteen years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 900,000 tons Year 3: 400,000 tons Year 4: 210,000 tons Year 5: 150,000 tons Calculate the depletion expense for the next five years and create the journal entry for year one.
Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,100,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 90,000 tons Year 3: 100,000 tons Year 4: 110,000 tons Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.
Salter Mining Company purchased the Northern Tier Mine for $50 million cash. The mine was estimated to contain 6.47 million tons of ore and to have a residual value of $1.5 million.During the first year of mining operations at the Northern Tier Mine, 55,000 tons of ore were mined, of which 18,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations.
Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine was estimated to contain 2.5 million tons of ore and to have a residual value of $1 million. During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore were mined, of which 40,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations. (Amounts to be deducted should be indicated by a minus sign) Property, plant, & equipment Accumulated depletion Mining property: Northern Tier Mine Salter Mining Company Balance…
Salter Mining Company purchased the Northern Tier Mine for $21 million cash. The mine wasestimated to contain 2.5 million tons of ore and to have a residual value of $1 million.During the first year of mining operations at the Northern Tier Mine, 50,000 tons of ore weremined, of which 40,000 tons were sold.a. Prepare a journal entry to record depletion during the year.b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in SalterMining Company’s balance sheet after the first year of operations. c. Will the entire amount of depletion computed in part a be deducted from revenue in the deter-mination of income for the year? Explain.
Weber Company purchased a mining site for $690,727 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 86,719 tons will be recovered. The estimated residual value of the property is $40,504. During the first year, the company extracted 5,948 tons of ore. The depletion expense is a.$65,022.30 b.$44,598.37 c.$47,376.52 d.$40,504.00
On April 17 of the current year, a mining company purchased the rights to a mine. The purchase price plus additional costs necessary to prepare the mine for extraction of minerals totaled $6,300,000. The company expects to extract 1,050,000 tons of minerals during a four-year period. During the current year, 255,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for the current year. 2. Is depletion considered part of the product cost and included in the cost of inventory? 1. Depletion for the current year 2. Is depletion considered part of the product cost and included in the cost of inventory?
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Depletion: Calculating and Journalizing Mineral Works Co. acquired a salt mine at a cost of $1,925,000, with no expected salvage value. The estimated number of units available for production from the mine is 3,500,000 tons. a. During the first year, 220,000 tons are mined and sold. b. During the second year, 290,000 tons are mined and sold. Required: 1. Calculate the amount of depletion expense for both years. Year 1 Year 2 2. Prepare general journal entries for depletion expense. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 1 Year 1 1 2 3 3 4 Year 2 4 5