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