Antique Accents purchased a mine on January 3, 2015 for $3.50 million. It will use the mine for 7 years at which time it will be reclamation. The cost of reclaiming the mine after 7 years is $0.50 million. The effective rate of interest for Antique Accents is 6% and all purchases were made for cash. Antique Accents' fiscal year end is December 31, 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. Record the following entries:

a) The purchase of the mine.

b) The recognition of the asset retirement obligation (ARO).

c) The adjusting entries required at year end regarding the mine assuming Antique Accents uses the straight-line method for its long-term assets.

d) The entry on January 4, 2022 to reclaim the mine assuming it cost Antique Accents $995,000.

Answer rating: 100% (QA)

Antique Accents Journal Entries a Purchase of the Mine Jan 3 2015 Description Purchase of mine asset ... View the full answer