J. larson amp company purchased the right to extract ore, Ask an Expert

Accounting

J. Larson & Company purchased the right to extract ore from a mineral deposit by paying $50,000 in cash and signing a $200,000 promissory note. Larson spent an additional $25,000 cash for a geological report that estimated the mineral deposit contained 110,000 tons of ore. Larson expects the asset to have a zero residual value when fully depleted. During the first year of operations, 34,000 tons of ore were mined.

Required:

a) Prepare the journal entries to record the purchase of the right to the mineral deposit..

b) The payment for the geological report.

c) The depletion of the mineral deposit for the first year.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9431283

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - on january 1 year 1 homeland entity he signed a

Question - On January 1, year 1, Homeland Entity (HE) signed a 20-year lease contract for an office building. The lease contract calls for HE to make payments of $10,000 at the beginning of each year, with the first paym ...

Question - use the following information for transactions

Question - Use the following information for transactions 18 and 19. You are the SELLER. You sell merchandise on account for $12,000. The merchandise cost you $7,200. The terms are FOB shipping, 2/10, n/30. You receive a ...

Question - kripke company reported net income for fiscal

Question - Kripke Company reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders tha ...

Question - hillside company enters into a contract with

Question - Hillside Company enters into a contract with Sanchez Inc. to provide a software license and 3 years of customer support. The customer-support services require specialized knowledge that only Hillside Company's ...

Question - in its first month of operations swifty

Question - In its first month of operations, Swifty Corporation made three purchases of merchandise in the following sequence: (1) 290 units at $5, (2) 390 units at $7, and (3) 490 units at $8. Assuming there are 190 uni ...

Question - on may 1 2016 benzs sandwich shop loaned 14000

Question - On May 1, 2016, Benz's Sandwich Shop loaned $14,000 to Mark Henry for one year at 6 percent interest. Required - a. What is Benz's interest income for 2016? b. What is Benz's total amount of receivables at Dec ...

Question - poe inc had the following bank reconciliation at

Question - Poe, Inc. had the following bank reconciliation at March 31, year 2: Balance per bank statement, 3/31/Y2 $46,500 Add deposit in transit 10,300 56,800 Less outstanding checks 12,600 Balance per books, 3/31/Y2 $ ...

Assessment task select two public limited companies listed

Assessment task: Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then go to the Investor Relations secti ...

Management accounting assignment -assignment topic -

Management Accounting Assignment - Assignment Topic - Management Accounting Principles and Effective Planning Tools for Managing Accounts Aim of this assignment - The overall aim of this unit is to introduce the fundamen ...

Question - please solve with explanation - candy co

Question - Please solve with explanation - Candy Co. purchased a machine on January 1, 2011, for $300,000. At the time of purchase, the machine was estimated to have a life of 8 years and a residual value of $10,000. In ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert