On July 1, 2020, Ticino AG invested CHF736,000 in a mine estimated to have 800,000 tons of
Question:
On July 1, 2020, Ticino AG invested CHF736,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2020, 124,000 tons of ore were mined.
Instructions
a. Prepare the journal entry to record depletion.
b. Assume that the 124,000 tons of ore were mined, but only 90,000 units were sold. How are the costs applicable to the 34,000 unsold units reported?
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Step by Step Answer:
a Dec 31 Inventory 114080 Accumulated Depletion 124000 X CHF092 114080 Cost a CHF...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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