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worty [1.4K]
3 years ago
14

Last year, Mountain Top, Inc., purchased a coal mine at a cost of $900,000. The salvage value has been estimated at $100,000. Th

e coal mine has an estimated 200,000 tons of available coal. A total of 70,000 tons were mined and sold during the current year. Complete the necessary adjusting journal entry to record depletion expense for the current year by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns Answer is complete but not entirely correct. No Date General Journal Credit Debit 100,000 Dec 31 Depletion expense Accumulated depreciation 70,000
Business
1 answer:
I am Lyosha [343]3 years ago
8 0

Answer:

                       Journal entry

Date          Description                        Debit                  Credit

                Depletion expenses           $280,000

                 Accumulated Depletion                               $280,000  

Explanation:

To determin the depletion expenses, calculate the depletion per ton of coal using producing unit  = (cost - salvage value)/ estimated unit

                                    =  ($900,000  -  $100,000)/200,000

                                    =  $4/ton

Depletion expenses = $4 x 70,000  = $280,000

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Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.50. It expects to grow at a constant rate of 2
mr Goodwill [35]

Answer:

The current price of Hubbard's common stock is <u>$25.50</u>.

Explanation:

This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:

P = D1/(r - g) ............................ (1)

Where,

P = Current stock price = ?

D1 = Next dividend =  D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53

r = required return = 8%, or 0.08

g = growth rate = 2%, or 0.02

Substituting the values into equation (1), we have:

P = $1.53 / (0.08 - 0.02) = $25.50

Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.

7 0
3 years ago
Windsor, Inc. just began business and made the following four inventory purchases in June:
alisha [4.7K]

Answer:

c. the average cost method.

Explanation:

Windsor INC. purchased inventory during the month of June as follows:

June 1 129 units at $890

June 10 172 units at $1340

June 15 172 units at $1440

June 28 129 units at $ 1140

and at the end of the period, there are 180 units on hand.

In order to get highest gross profit the closing sock should be the highest, accordingly the value of inventory at hand should as as follows under different method explain below:

Under FIFO method the inventory first enter into the enterprise is available for sale at first so the inventory of 180 units at end should be values at the last price mentioned in the question i.e $1140, therefore the value amounts to $1140*180 units=$205200

Under LIFO method, likewise the last entered inventory will be available for sale and the inventory at the end of period will be valued at the price at which the inventory first bought i.e $890, therefore the value amounts to 180 units*$890=$160200

Under Average cost method the effect of differential price is distributed over the quantity bough during a period so that the company remains in ineffective condition during the period from the price change

Average cost per unit= (129*$890 +172*$1340+ 172*$1440+129*$1140)/602 units

=$1229.29

and for the 180 units the value amounts to 180*$122.29=$221271.429

so, as per explanation given above, it is certain that the highest value will be in average cost method.

The correct option is - c. the average cost method.

5 0
3 years ago
As security becomes more important, most routers now have software that enables the network manager to create a(n) _______ that
Elan Coil [88]

Answer:

Access Control List

Explanation:

An access control list is a table that tells a computer operating system(windows, Mac-os, Linux) which access rights a user or group of users have to certain object on the computer system. The object to be accessed may range from an individual file to a directory.

The most commonly allowed accesses includes the ability to read files, execute files (i.e if the files is executable; .exe), write to the file.  

3 0
3 years ago
Loni owns a software company and has a great idea for a new app. In order to build the app, she will need to hire a computer exp
never [62]

Answer:

No, Loni should not take the loan and build the app.

Explanation:

If she borrows $87,000 to build the app, at the end of the year she will have to pay $87,000 x (1+0.15) = 100,050 in principal and interest to the bank.

After selling the app she will get 99,000 - 100,050 = $1,050.

In other words, she will be making a loss.

6 0
3 years ago
No more than 10% of your monthly income should go toward credit card payments.. . false. . true.
evablogger [386]
FALSE.  Pay down the credit card, 100%,  FIRST because it's probably the most expensive credit you have. Don't put things on the credit card that you won't be able to pay for this month.
4 0
3 years ago
Read 2 more answers
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