Shamrock Timber Inc., a small private company that follows ASPE, owns 9,900 hectares of timberland purchased...

  

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Shamrock Timber Inc., a small private company that follows ASPE, owns 9,900 hectares of timberland purchased in 2007 at a cost of $1,500 per hectare. At the time of purchase, the land without the timber was valued at $500 per hectare. In 2008, Shamrock built fire lanes and roads, with a physical life of 30 years, at a cost of $84,000 and separately capitalized these costs. Every year, Shamrock sprays to prevent disease at a cost of $4,000 per year and spends $15,000 to maintain the fire lanes and roads. During 2009, Shamrock selectively logged and sold 600,000 cubic metres of the estimated 3.00 million cubic metres of timber. In 2010, Shamrock planted new seedlings to replace the cut trees at a cost of $100,000. Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2010. Depletion charge 2$ Provide the journal entries to record the depletion charged to inventory (and subsequently to cost of goods sold) for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round depletion rate to 2 decimal places, e.g. 15.75 and final answer to 0 decimal places, e.g. 1,525.) Account Titles and Explanation Debit Credit No Entry No Entry (To record depletion) (To record cost of goods sold) List of Accounts Shamrock has not logged since 2009. Assume that Shamrock logged 980,000 cubic metres of timber in 2020, of which 60% was sold in 2020 and the remainder sold in 2021. The timber cruiser (the appraiser) had estimated a total resource of 5 million cubic metres. Determine the cost of timber sold that relates to the depletion for 2020 and 2021. Cost of timber sold related to depletion 2$ Provide the journal entries to account for the cost of timber produced in 2020 and subsequently sold in 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit No Entry No Entry (To record depletion) (To record cost of goods sold in 2020) (To record cost of goods sold in 2021) Prepare the necessary journal entry to show how Shamrock would account for the maintenance costs of the fire lanes and roads and the spraying of the timberland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit List of Accounts Shamrock Timber Inc., a small private company that follows ASPE, owns 9,900 hectares of timberland purchased in 2007 at a cost of $1,500 per hectare. At the time of purchase, the land without the timber was valued at $500 per hectare. In 2008, Shamrock built fire lanes and roads, with a physical life of 30 years, at a cost of $84,000 and separately capitalized these costs. Every year, Shamrock sprays to prevent disease at a cost of $4,000 per year and spends $15,000 to maintain the fire lanes and roads. During 2009, Shamrock selectively logged and sold 600,000 cubic metres of the estimated 3.00 million cubic metres of timber. In 2010, Shamrock planted new seedlings to replace the cut trees at a cost of $100,000. Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2010. Depletion charge 2$ Provide the journal entries to record the depletion charged to inventory (and subsequently to cost of goods sold) for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round depletion rate to 2 decimal places, e.g. 15.75 and final answer to 0 decimal places, e.g. 1,525.) Account Titles and Explanation Debit Credit No Entry No Entry (To record depletion) (To record cost of goods sold) List of Accounts Shamrock has not logged since 2009. Assume that Shamrock logged 980,000 cubic metres of timber in 2020, of which 60% was sold in 2020 and the remainder sold in 2021. The timber cruiser (the appraiser) had estimated a total resource of 5 million cubic metres. Determine the cost of timber sold that relates to the depletion for 2020 and 2021. Cost of timber sold related to depletion 2$ Provide the journal entries to account for the cost of timber produced in 2020 and subsequently sold in 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit No Entry No Entry (To record depletion) (To record cost of goods sold in 2020) (To record cost of goods sold in 2021) Prepare the necessary journal entry to show how Shamrock would account for the maintenance costs of the fire lanes and roads and the spraying of the timberland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit List of Accounts

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Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2... View the full answer