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
Norma-Jean [14]
3 years ago
5

A company acquired mineral rights for $7,500,000. The mineral deposit is estimated at 600,000 tons and during the year 100,000 t

ons were extracted and sold. a. Calculate depletion expense for the year. b. Show the effects on the accounts and the financial statements of the company. c. What is the book value of the mineral rights at the end of the current year
Business
1 answer:
omeli [17]3 years ago
7 0

Answer:

The answer is given below;

Explanation:

a. Depletion Expense for the year  ($7,500,000/600,000)*100,000=$1,250,000

b. The net income and as a results retained earnings  will be reduced $1,250,000

c.    The mineral rights will be reported at $7,500,000-$1,250,000 =$6,250,000

You might be interested in
A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimate
MrMuchimi

Answer:

Dr Seller Account $100

Cr Buyer Account      $100

Explanation:

The property sold on 15th of the month by Mr. A to Mr. B and the utility bill received later of this month would be split between Mr. A and Mr. B. The basis for the split of the utility bills would be the share that Mr. A utilized the facilities and in this scenario, it is $100. Hence the buyer Mr. B has receivable of $100 and the seller Mr. A has a liability payable of $100 amount.

Hence the buyer will debit the bill by $100 receivable and the Seller will debit the bill owed to buyer by $100.

3 0
3 years ago
Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $6 par value common stock
DedPeter [7]

Answer:

The total stockholders' equity at the end of 2021 is $271,500

Explanation:

In order to calculate the total stockholders' equity at the end of 2021 we would have to use the following formula:

Stockholders' equity=Common stock+ Paid-in capital in excess of par+ Net income-Dividends- Treasury stock

Common stock= ( 10,000*$6 + 20,000*$6 ) = $180,000  

Paid-in capital in excess of par=(10,000*($8-$6) + 20,000*($9-$6)=$ 80,000   Treasury stock= ( 3,500 * $11 )=$38,500

Therefore, Stockholders' equity= $180,000+$ 80,000 + $100,000-$ 50,000 - $38,500    

Stockholders' equity= $271,500

The total stockholders' equity at the end of 2021 is $271,500

6 0
3 years ago
Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raisi
andrezito [222]

Answer:

The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%

Explanation:

Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:

funds raised=$500,000/0.96=$520,833.33  

Annual return on investment=cash inflow-initial cash outflow

cash inflow is $600,000

cash outflow  is $520,833.33  

annual return on investment=$600,000-$520,833.33=$79166.67

rate of return on project=annual return on investment/initial investment

                                        =$79,166.67 /$520,833.33*100=15.20%

The rate of return that Cold Goose Metal Works Inc is 15.20%

6 0
3 years ago
The total factory overhead for Martin Company is budgeted for the year at $375,000. Martin manufactures two garden products: a l
meriva

Calculation of total number of budgeted direct labor hours for the year:


It is given that Martin manufactures two garden products. These products each require four direct labor hours (dlh) to manufacture. Each product is budgeted for 2,500 units of production for the year.

Hence, the total number of budgeted direct labor hours for the year shall be = 2 Products *2500 units * 4 dlh = 20,000 dlh.



4 0
3 years ago
Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to(i)the additional
xeze [42]

Answer:

The correct answer to the following question is option B) both statements i and ii are correct.

Explanation:

First of all the marginal product can be defined as the additional unit of product that a business can produce by using additional unit of input. And marginal revenue product refers to the change that occurs in the total revenue due to the production of additional unit of product.

Any competitive firm would hire additional workers only when the MRPL (marginal revenue product of labor) is greater than the wages paid to that labor and additional cost incurred in hiring those workers and they would stop hiring the workers when the MRPL is equal to the cost paid to the workers.

4 0
3 years ago
Other questions:
  • Troy Engines, Ltd., Manufactures A Variety Of Engines For Use In Heavy Equipment. The Company Has Always Produced All Of The Nec
    11·1 answer
  • Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on
    12·1 answer
  • A customer redeems 1,000 shares of ABC Fund on Wednesday, June 14th. Under the provisions of the Investment Company Act of 1940,
    12·1 answer
  • The ____ theory argues that individuals analyze three relationships: effort - performance, performance- rewards, and rewards-per
    7·1 answer
  • Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally,
    12·1 answer
  • Scenario: Over the last several months, there has been a rapid increase in the number of loans that banks have provided for mort
    14·2 answers
  • You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, y
    8·1 answer
  • Only buy on credit, what you can pay for in cash refers to... Group of answer choices Credit Cards Payday Loans Morgages Auto Lo
    10·1 answer
  • Flint Corporation commenced operations in early 2020. The corporation incurred $58,500 of costs such as fees to underwriters, le
    9·1 answer
  • Because ems personnel are often exposed to both acute and chronic stressors, ________ management may be helpful to cope with on-
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!