b\'s Depr 101, CRwnt/Buy Books on Che x\'a Chegg Study ialded . X Show Me HowCal
ID: 2396918 • Letter: B
Question
b's Depr 101, CRwnt/Buy Books on Che x'a Chegg Study ialded . X Show Me HowCaloustor Caldwell Mining Co. acquired mineral rights for $36,750,000. The mineral deposit is estimated at 35,000,000 tons. During the current year 10,850,000 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 G. Journalize the adjusting entry on December 31 to recognize the depletion expense 0
Explanation / Answer
Answer(a): Depletion Rate = Cost of resources / Estimated total units of resources
Depletion Rate = 36750000 / 35000000
Depletion Rate = 1.05 per ton
Answer(b): Depletion Expenses = Depletion rate * Units sold
Depletion Expenses = 1.05 * 10850000
Depletion Expenses = $11392500
(c): Journal entry:
Particulars Debit Credit Dec.31 Depletion Expenses 11392500 Accumulated Depletion 11392500Related Questions
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