Corentine Company acquires an ore mine at a cost of $ 1,400,000. It incurs additional costs of

Question:

Corentine Company acquires an ore mine at a cost of $ 1,400,000. It incurs additional costs of $ 400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $ 200,000.

1. Prepare the entry( ies) to record the cost of the ore mine.

2. Prepare the year- end adjusting entry if 180,000 tons of ore are mined and sold the first year.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

See More Books

Question Posted: Nov 26, 2013 09:39 AM

See More Questions

Diamond Company acquires an ore mine at a cost of $1,300,000. It incurs additional costs of $200,000 to access the mine, which is estimated to hold 500,000 tons of ore. The estimated value of the...
Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the...
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
In practice, bar charts are used occasionally to summarize a numerical variable over time, which can be handy. The bar chart below shows the inflation rate based on the Consumer Price Index in India....
For the fiscal example of Section 17.4.5, what would the outcome be if the U.S. government simply taxed each U.S. household to pay for the public works project? Specifically, suppose that at the...
You have recently been hired as a consultant for a personal financial planning firm. One of your first projects is creating a retirement plan for a young couple, Charles and Marie Smythe. They have...
Identify the mode for each of the following sets of data: a. 7, 3, 7, 1, 7 b. 3, 1, 1, 2, 3, 3 c. 8, 22, 8, 10, 9, 8, 12, 7, 8 d. 5, 3, 6, 4, 5, 3, 1, 5, 2, 5, 6, 5 e. 11, 9, 13, 6, 14, 12, 7, 12,...
An accountant wishes to predict direct labor cost (y) on the basis of the batch size (x) of a product produced in a job shop. Data for 12 production runs are given in Table 13.5, along with the Excel...
Image transcription text THE REPORT: Your company is making a new component. You conduct a stress analysis and determine that the widget must be Fabricated from a material having a yield strength of...
The average cost of a gallon of unleaded gasoline in Greater Cincinnati was reported to be $2.41 (The Cincinnati Enquirer, February 3, 2006). During periods of rapidly changing prices, the newspaper...
Hortez Co. owns equipment that cost $ 76,800, with accumulated depreciation of $ 40,800. Hortez sells the equipment for cash. Record the sale of the equipment assuming Hortez sells the equipment for...
On January 4 of this year, Freckles Boutique incurs a $ 105,000 cost to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to...
List and explain the five levels from which use case descriptions can be written.
How is choice architecture related to behavioral economics and mechanism design?
Can a model that includes just money price miss relevant prices? Why or why not?
Economic experiments have found that individuals prefer an outcome where no one is made better off to an outcome where the welfare of only some is improved if that improvement in welfare is unequally...
How did mechanism design lead to behavioral economics?
What are three types of choices in which nudges are useful?
Match one or more of the structures below with each of the following statements. (a) An optically active compound that is oxidized by MnO 2 to an optically inactive compound. (b) An optically active...
Parkin Industries, a U.S. company, acquired a wholly-owned subsidiary, located in Italy, at the beginning of the current year, for 200,000. The subsidiary's functional currency is the euro. The...
Find the order of accuracy in the trapezoidal rule and Simpson's rule.
Assume that you are Jackson Companys accountant. Company owner Abel Terrio has reviewed the 2011 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment...
Access the July 30, 2009, 10-K filing (for year-end June 30, 2009) of Microsoft (MSFT) at www.sec.gov. Review its note 4, Investments. Required 1. How does the cost-basis total amount for its...
Refer to the opening feature in this chapter about Michael Chasen and Matthew Pittinsky and their company, Blackboard. Assume that they must acquire the Japanese rights to certain educational...
Silverton Confectionery is a growing Berkshire-based company specialising in selling quality chocolates and sweets at higher than average prices through newsagents and confectioners. At present their...
4. X, the proprietor of a departmental store, decided to calculate separate profits for his two departments L and M for the month ending 31st January. Stock on 31st January could not be valued for...
What level of confidentiality should be attached to the preparation and handling of a memorandum of law? Why? Assume you have been working for a legal specialist in estate law for a number of years...

Corentine Company acquires an ore mine at a cost of $ 1,400,000. It incurs additional costs of

Question:

Step by Step Answer:

1 Ore Mine 1800000 Cash 1800000 To record cost of or...View the full answer

Fundamental accounting principle

Students also viewed these Accounting questions