Colorado Mining paid $658,000 to acquire a mine with 47,000 tons of coal reserves. The financial...

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Colorado Mining paid $658,000 to acquire a mine with 47,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 24,675 tons of coal in year 1 and 21,150 tons in year 2. Required a. Compute the depletion charge per unit. b-1. Compute the depletion expense for years 1 and 2 in a financial statements. b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion charge per unit. De charge per per unit ton. < Req A Req B1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion expense for years 1 and 2 in a financial statements. Depletion Expense Year 1 Year 2 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial stater (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, or FA for finar the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and with a minus sign. Round final answers to the nearest whole dollar amount. Not all cells will require entry.) COLORADO MINING Horizontal Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Statement of Cash Flows = Liabilities + Common Stock Expenses = Coal Cash Reserves Acquisition of coal reserves 687,600 + Retained Revenue Earnings +687,600+ + + Depletion for Year 1 + Depletion for Year 2 + + = = Net Income Colorado Mining paid $658,000 to acquire a mine with 47,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 24,675 tons of coal in year 1 and 21,150 tons in year 2. Required a. Compute the depletion charge per unit. b-1. Compute the depletion expense for years 1 and 2 in a financial statements. b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion charge per unit. De charge per per unit ton. < Req A Req B1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion expense for years 1 and 2 in a financial statements. Depletion Expense Year 1 Year 2 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial stater (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, or FA for finar the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and with a minus sign. Round final answers to the nearest whole dollar amount. Not all cells will require entry.) COLORADO MINING Horizontal Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Statement of Cash Flows = Liabilities + Common Stock Expenses = Coal Cash Reserves Acquisition of coal reserves 687,600 + Retained Revenue Earnings +687,600+ + + Depletion for Year 1 + Depletion for Year 2 + + = = Net Income

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Answer to Part a Depletion Charge per Unit Acquisition Cost Expected Extr... View the full answer