Answer:
1) total cost $3,209,909
<u><em>journal entries:</em></u>
copper deposit 3,209,909 debit
cash 2,800,000 credit
restoration liability 409,909 credit
Explanation:
mine deposit: 2,000,000 land
+ 800,000 extraction
<u> + 409,909</u> restoration cost
3,209,909 total cost
expected monetary value of the restoration cost:
![\left[\begin{array}{cccc}$Electrical&Return&Probability&Weight\\$One&500,000&0.25&125,000\\$Second&600,000&0.4&240,000\\$Third&800,000&0.35&280,000\\$Total&&1&645,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24Electrical%26Return%26Probability%26Weight%5C%5C%24One%26500%2C000%260.25%26125%2C000%5C%5C%24Second%26600%2C000%260.4%26240%2C000%5C%5C%24Third%26800%2C000%260.35%26280%2C000%5C%5C%24Total%26%261%26645%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
<em><u>preset value of restoration cost:</u></em>
Maturity $645,000.00
time 4.00
rate 0.12000
PV 409,909.1606
Answer: E) Lessors provide a source of financing for lessees.
Explanation:
A Lease is a form of financing because in financing, an entity provides funding in the form of assets whether cash or otherwise to another entity to allow them use to operate their business. The entity that was provided with funding will then pay a periodic payment as a way to pay off the funding.
This is what happens in leases. The Lessor is the owner of the asset and they lease it to the Lessee who then uses it and pays a periodic amount to the Lessor for using the asset.
Answer:
A.20per ton
B.141,600
C.389,400
Explanation:
A.
($856,800+$97,200-$108,000+$216,000)/53,100 tons
=$1,062,000/53,100
= 20per ton
(b)
Resources removed totaled 26,550 tons
Less company sold 19,470 tons.
Balance 7,080 tons
Hence
Inventory 20*7,080
=141,600
(c)
20* 19,470 tons
=389,400
Answer:
Explanation:
The adjusting entries are shown below:
1. Insurance expense A/c Dr $1,200
To Prepaid insurance A/c $1,200
(Being prepaid insurance is adjusted)
2. Supplies expense A/c Dr $6,200
To supplies A/c $6,200
(Being supplies adjusted)
The supplies at the end of the year is computed below:
= Supplies account balance + purchase of supplies - available supplies
= $5,000 + $2,000 - $800
= $6,200
