Exercise 8-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining...
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Exercise 8-18 Depletion of natural resources LO P1, P3 On April 2, 2017, Montana Mining Co. pays $3,402,240 for an ore deposit containing 1,554,000 tons. The company installs machinery in the mine costing $150,100, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 2017, and mines and sells 185,400 tons of ore during the remaining eight months of 2017. Prepare the December 31, 2017, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits Debit General Journal Date Credit Dec 31 Record entry View general journal Clear entry
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