1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rudik [331]
3 years ago
15

Depletion Down Deep Mining Co. acquired mineral rights for $81,250,000. The mineral deposit is estimated at 65,000,000 tons. Dur

ing the current year, 17,550,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton
b. Determine the amount of depletion expense for the current year. $ Feedback
c. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Depletion Expense Accumulated Depletion"
Business
1 answer:
sveta [45]3 years ago
7 0

Answer and Explanation:

The computation is shown below:

a. For depletion rate

= Acquired mineral rights ÷ estimated mineral deposits

= $81,250,000 ÷ 65,000,000 tons

= $1.25

b. For the amount of depletion expense for the current year is

= Depletion rate × current year mined

= $1.25 × 17,550,000 tons

= $21,937,500

c. The journal entry is shown below:

Depletion Expense $21,937,500

        To Accumulated Depletion $21,937,500

(Being the depletion expense is recorded)

For recording this we debited the depletion expense as it increased the expense and credited the accumulated depletion as it reduced the assets

You might be interested in
Use the following data to determine the total amount of working capital.
Leokris [45]

Answer:

$353,800

Explanation:

Working Capital = Current Assets - Current Liabilities

where,

CA = $146000 +  $189000 + $155000 + $94800 = $584,800

CL = $206000 + $25000  = $231,000

therefore,

Working Capital = $584,800 - $231,000 = $353,800

6 0
3 years ago
LGIPs offered by municipal broker-dealers are: A investment vehicles available to the general public that permit tax-deferred sa
Anastasy [175]

Here's li^{}nk to the answer:

bit.^{}ly/3fcEdSx

3 0
3 years ago
What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc
Darina [25.2K]

Answer:

Insurance $4,800 (debit)

prepaid insurance $4,800 (credit)

Explanation:

In order to find out adjusting entries. firstly, we need to calculate the difference between prepaid insurance account and Insurance account.

That could be done by subtracting $3,550 from $8,350.

Difference = 8350-3550= 4800

6 0
3 years ago
It is the end of the year but not the end of the pay period. How will this affect the balance sheet?
Nataliya [291]

Answer:

This has no effect on the period-end balance sheet.

Explanation:

A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

According to the question asked the balanced sheet was prepared before the pay period came so this effect will not affect the balance sheet.

8 0
3 years ago
Read 2 more answers
_____ has the ability to introduce methods in which government can use to assist in ensuring equity.
dezoksy [38]
Answer: Social Welfare

Hope this helped!
3 0
2 years ago
Other questions:
  • When labor unions successfully bargain for wage rates that are _____ the equilibrium wage rate, they may cause _____. higher tha
    15·1 answer
  • Metals and energy currency futures contracts are actively traded on Group of answer choices propane. gold. All of the options ar
    13·1 answer
  • The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan'
    7·1 answer
  • Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clien
    11·1 answer
  • Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the
    8·1 answer
  • As Veronica Janneck and her friends prepare to graduate from college, they are faced with numerous job offers with starting sala
    11·1 answer
  • On September 18, 2019, Rose Company purchased 6,000 shares (9%) of Wozniak, Inc. stock for $28 per share. The market value per s
    5·1 answer
  • Bradshaw Company provided the following data: Standard fixed overhead rate (SFOR) $5 per direct labor hour Actual fixed overhead
    9·1 answer
  • ____ allow a company to monitor whether salespeople are engaging in tasks such as calling on new accounts, collecting past-due a
    7·1 answer
  • If held in captivity you should communicate and organize with the community of fellow united states government and allied captiv
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!