Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. depletion entries alaska mining co. acquired miner

Depletion entries Alaska Mining Co. acquired mineral rights for $16,354,000. The mineral deposit is estimated...

70.2K

Verified Solution

Question

Accounting

Depletion entries

Alaska Mining Co. acquired mineral rights for $16,354,000. The mineral deposit is estimated at 125,800,000 tons. During the current year, 18,850,000

a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. fill in the blank 1 of 1$

Similar to the units-of-production method to depreciate a fixed asset, the depletion rate that is calculated stays constant no matter how much of the natural resource is extracted.

Question Content Area

b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank.

Date Account Debit Credit
December 31 Accumulated DepletionDepletion ExpenseDepletion PayableMineral RightsRepairs and Maintenance Expense
Accumulated DepletionDepletion ExpenseDepletion PayableMineral RightsRepairs and Maintenance Expense
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Write five rights and five responsibilities of Parents And Children to each other

Psychology
Q

How does it impact of television/movies have cognitive, physical, and psychosocial development during middle childhood. Include how tv/movies...

Psychology
Q

When chromatin undergoes its nucleosomes pack tightly together and transcription cannot occur

Biology
Q

Summarize what is meant by Earth s carrying capacity

Biology
Q

2 points A firm that refurbishes personal computers PCs recently received 24 faulty computers of...

Statistics
Q

A humor piece published in a reputable medical journal notes that people can t tell...

Statistics
Q

The carrying value of $60,000 face value bonds at the end of the third year...

Accounting
Q

While preparing the June bank reconciliation, you notice that cheque #882 for $1,800 cleared the...

Accounting
Q

Assume that a company provided the following T-account before it had recorded any closing entries:...

Accounting
Q

Nina Niko launched a new business, Niko's Maintenance Co., that began operations on June 1....

Accounting
Q

Activity-Based Supplier Costing Bowman purchases 80% of its components from Buckner because of...

Accounting
Q

Carla Company had the following stockholders equity as of January 1, 2020. Common stock, $5...

Accounting