14. A company purchased a mineral deposit for $800,000 with a $100,000 cash down payment and...

 

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14. A company purchased a mineral deposit for $800,000 with a $100,000 cash down payment and a 5-year loan of $700,000. The company's geologist expects this property to produce 120,000 tons of minerals. The controller estimates that the land can be sold at the end of the useful life of the mining operation for $30,000. 1 Using the I-account below, prepare the entry to recognize: a. The acquisition of the mineral deposit b. The first year of depletion assuming the company mined and sold 7,000 tons of minerals. Current Assets ASSETS Property, Plant & Equipment Intangible Investments Assets/Other LIABILITIES Non- Current Current Liabilities Liabilities Contributed Capital EQUITY Earned Capital 14. A company purchased a mineral deposit for $800,000 with a $100,000 cash down payment and a 5-year loan of $700,000. The company's geologist expects this property to produce 120,000 tons of minerals. The controller estimates that the land can be sold at the end of the useful life of the mining operation for $30,000. 1 Using the I-account below, prepare the entry to recognize: a. The acquisition of the mineral deposit b. The first year of depletion assuming the company mined and sold 7,000 tons of minerals. Current Assets ASSETS Property, Plant & Equipment Intangible Investments Assets/Other LIABILITIES Non- Current Current Liabilities Liabilities Contributed Capital EQUITY Earned Capital

Answer rating: 100% (QA)

Assets abilities Equity Current assets PPE 1 Acquisition 100000 800000 2 ... View the full answer