Rocky Mountain Mining paid 5436,900 for the right to extract mineral assets from a 300.000...
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Rocky Mountain Mining paid 5436,900 for the right to extract mineral assets from a 300.000 ton deposit. In addition to the purchase price Rocky also paid a $1.000 lling fee, a $2.100 license fee to the state of Nevada, and $80,000 for a geological Survey of the property. Because Rocky purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the first year, Rocky romoved and sold 40,000 tons of the minerals Make journal entries to record (a) purchase of the minerals (debit Minerale). (b) payment of tees and other costs, and (c) depletion for the first year (Record debts frst, then credits. Select the explanation on the last fine of the journal entry) Begin by journalong to the purchase of the minerals (debit Mineral set) (Do not record payment for my additional com elated with a mineral We will do this entry Accounts and Explanation Dale Debit Crede AA
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