Recording Depletion Entries Western Mining Inc. acquires a zinc mine in January at a cost of...

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Recording Depletion Entries Western Mining Inc. acquires a zinc mine in January at a cost of $1,200,000 with an estimated 360,00 tons of zinc. Western Mining Inc. also incurs costs of $135,000 to develop the area around the site necessary to access the mine. The land is estimated to have a value of $75,000 after the zinc is mine By the end of the year, 54,000 tons of zinc were mined and 48,600 tons were sold. a. Record the entry for acquisition of the zinc mine. Hint: Any residual value is included in the acquisition cost of this zinc mine. b. Record the entries for (1) depletion and for (2) the cost of the sale of zinc during the year. Account Name a. Jan. 1 Zinc Mine Property Cash To record acquisition of mine. Debit Credit V 1,335,000 0 0 1,335,000 b. Dec. 31 Inventory-Zinc Zinc Mine Property Account Name Debit Credit 180,225 0% 0 200,250 x To record depletion Dec. 31 Cost of Goods Sold 0 0% Inventory-Zinc 0 0% To record cost of sales Recording Depletion Entries Western Mining Inc. acquires a zinc mine in January at a cost of $1,200,000 with an estimated 360,00 tons of zinc. Western Mining Inc. also incurs costs of $135,000 to develop the area around the site necessary to access the mine. The land is estimated to have a value of $75,000 after the zinc is mine By the end of the year, 54,000 tons of zinc were mined and 48,600 tons were sold. a. Record the entry for acquisition of the zinc mine. Hint: Any residual value is included in the acquisition cost of this zinc mine. b. Record the entries for (1) depletion and for (2) the cost of the sale of zinc during the year. Account Name a. Jan. 1 Zinc Mine Property Cash To record acquisition of mine. Debit Credit V 1,335,000 0 0 1,335,000 b. Dec. 31 Inventory-Zinc Zinc Mine Property Account Name Debit Credit 180,225 0% 0 200,250 x To record depletion Dec. 31 Cost of Goods Sold 0 0% Inventory-Zinc 0 0% To record cost of sales