Colorado Mining paid $686,000 to acquire a mine with 49,000 tons of coal reserves. The following...
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Colorado Mining paid $686,000 to acquire a mine with 49,000 tons of coal reserves. The following statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 25,725 tons of coal in year 1 and 22,050 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. The first event is recorded as an example. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion charge per unit. Depletion charge per unit per ton. Req A Req B1 Year 1 Year 2 Compute the depletion expense for years 1 and 2 in a financial statements. Req B2 Depletion Expense Req A Assets Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount.) Cash + 707,900 + Req B1 Coal Reserves Depletion for Year 1 Depletion for Year 2 Balance Sheet = Reg B2 = = + COLORADO MINING Statements Model Liabilities Common Stock + Stockholders' Equity Retained Earnings + 707,900 + Income Statement Revenue - Expenses =1 |=1 Net Income Statement of Cash Flows Show less A Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $960, and the book value prior to the repair was $5,170. In addition, the company spent $9,500 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $88,000 and related Accumulated Depreciation account at $41,100. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building? Tow Truck Building Book Value Colorado Mining paid $686,000 to acquire a mine with 49,000 tons of coal reserves. The following statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 25,725 tons of coal in year 1 and 22,050 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. The first event is recorded as an example. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the depletion charge per unit. Depletion charge per unit per ton. Req A Req B1 Year 1 Year 2 Compute the depletion expense for years 1 and 2 in a financial statements. Req B2 Depletion Expense Req A Assets Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount.) Cash + 707,900 + Req B1 Coal Reserves Depletion for Year 1 Depletion for Year 2 Balance Sheet = Reg B2 = = + COLORADO MINING Statements Model Liabilities Common Stock + Stockholders' Equity Retained Earnings + 707,900 + Income Statement Revenue - Expenses =1 |=1 Net Income Statement of Cash Flows Show less A Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $960, and the book value prior to the repair was $5,170. In addition, the company spent $9,500 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $88,000 and related Accumulated Depreciation account at $41,100. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building? Tow Truck Building Book Value
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Colorado Mining Computation of depletion charge per unit depletion charge per unit 14 per ton Cost o... View the full answer
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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