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
mr Goodwill [35]
3 years ago
7

Mountain Mining paid $ 598 comma 100 for the right to extract mineral assets from a 450 comma 000​-ton deposit. In addition to t

he purchase​ price, Sierra also paid a $ 300 filing​ fee, a $ 1 comma 600 license fee to the state of​ Nevada, and $ 75 comma 000 for a geological survey of the property. Because Sierra 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, Sierra removed and sold 50 comma 000 tons of the minerals. Make journal entries to record​ (a) purchase of the minerals​ (debit Minerals),​ (b) payment of fees and other​ costs, and​ (c) depletion for the first year.
Business
1 answer:
Vlad [161]3 years ago
4 0

Answer:

a. Minerals A/c Dr $598,100

         To Cash A/c $598,100

(Being the minerals purchased for cash)

b. Various vendor A/c Dr $76,900

             To Cash A/c $76,900

(Being payment of fees is recorded)

c. Depletion A/c Dr $79,500

           To Minerals A/c $79,500

(Being the depletion for the first year is recorded)

Explanation:

The journal entries are shown below:

a. Minerals A/c Dr $598,100

         To Cash A/c $598,100

(Being the minerals purchased for cash)

b. Various vendor A/c Dr $76,900

             To Cash A/c $76,900

(Being payment of fees is recorded)

Minerals A/c Dr $76,900

        To Cash A/c $76,900

(Being payment of fees is recorded)

The computation is shown below:

= Filling fee + license fee + geological survey of the property

= $300 + $1,600 + $75,000

= $76,900

c. Depletion A/c Dr $79,500

           To Minerals A/c $79,500

(Being the depletion for the first year is recorded)

The computation is shown below

First we have to compute the depletion per ton which is presented below:

= (Paid amount of Mountain Mining + Filling Fee + License fee - Geological survey of the property) ÷ (Number of tons deposit)

= ($598,000 + $300 + $1,600 + $75,000) ÷ (450,000 tons)

= $1.59

Now if 50,000 tons are sold in first year, so the depletion would be

= 50,000 tons × $1.59

= $79,500

You might be interested in
Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $3 per share. I
Vera_Pavlovna [14]

Answer:

Correct option is B.

<u> The weight of debt for WACC purposes is 23.08%</u>

Explanation:

Amount of debt = 2 million x 0.90

 = 1.80 million

Amount of equity = 2 million x 3

= 6 million

Weight of debt = amount of debt/ (amount of debt + amount of equity)

  = 1.80 million / ( 6 million + 1.80 million)

  =23.08%

8 0
3 years ago
When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the:
Vlad1618 [11]

Answer:

The remaining part of the question is:

The interest payments are reinvested at the:

a.Coupon rate.

b.Current yield.

c.Yield to maturity at the time of the investment.

d.Prevailing yield to maturity at the time interest payments are received.

e.The average yield to maturity throughout the investment period

<u>Correct Answer:</u>

b.<u>Current yield. </u>

<u></u>

Explanation:

7 0
3 years ago
Suppose a company purchased land and a building for $20,000,000 cash. The appraised value of the building was $17,000,000, and t
sladkih [1.3K]

Answer:

The amount of the purchase price will be allocated to the Land account is $6,400,000

Explanation:

For computing the purchase price of the land, first we have to compute the weightage of both the fixed assets which are shown below:

For building = Appraised value of building ÷ total value of fixed assets '

                    = $17,000,000 ÷ $25,000,000

                    = 68%

where,

Total value of fixed assets =  Appraised value of the building +  appraised value of the land

= $17,000,000 + $8,000,000

= $25,000,000

For land       = Appraised value of land ÷ total value of fixed assets '

                    = $8,000,000 ÷ $25,000,000

                    = 32%

So, the purchase price of the land equal to

= Total purchase price of fixed assets × weightage of land

= $20,000,000 × 32%

= $6,400,000

6 0
3 years ago
Sienna’s take home pay is $13,400. The company deducts $200 from her pay as part of her voluntary deductions. Her total tax dedu
dlinn [17]

Answer:

Gross pay= $20,000

Explanation:

She takes $ 13,400.

the company deducted $200 as voluntary deductions.

She had $13600 after paying tax 32%which is equivalent to 68%

$                      %

13600              68

x                      100

x= 13600*100/68= 1360000/100= $20,000

Her gross pay is $ 20,000

6 0
3 years ago
Calculate the planned shortage in dollars if the planned shortage % is 1.64% and the planned net sales are $1,189,000.
EleoNora [17]

Answer:

the planned shortage in dollars is $19,499.60

Explanation:

The computation of the planned shortage in dollars is shown below:

= Percentage of planned shortage × planned net sales

= 1.64% × $1,189,000

= $19,499.60

hence, the planned shortage in dollars is $19,499.60

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
2 years ago
Other questions:
  • Tony charges $5 to park a car in his parking lot. He pays $40 per day to rent the lot. If 50 cars park in his lot during the day
    6·1 answer
  • A few years ago, simon powell purchased a home for $225,000. today, the home is worth $400,000. his remaining mortgage balance i
    7·1 answer
  • The demand for land, labor, and capital used to produce a good depends on which of the following factors?
    10·1 answer
  • Microsoft Windows at one time would have been considered this type of monopoly?
    12·1 answer
  • Hachiro produces results. He is scrupulously honest. He checks to see that his teammates have what they need. He always talks ab
    11·1 answer
  • If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs. a. Th
    12·1 answer
  • Suki health foods has 19,000 shares of $5 par common stock outstanding, which were issued at $12 per share. suki also has a defi
    10·1 answer
  • Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a f
    8·2 answers
  • Under what section of the statement of cash flows would you classify dividends paid on common stock?
    8·1 answer
  • According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, r s , can be estimated by adding a r
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!