90.2K

Verified Solution

Link Copied!

Colorado Mining paid $620,400 to acquire a mine with 833,000 tons of coal reserves. The horizontal statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 437,325 tons of coal in Year 1 and 374,850 tons in Year 2. Required a. Compute the depletion charge per unit. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. c. Prepare the general journal entries to record the depletion expense for years 1 and 2. Answer is not complete. Complete this question by entering your answers in the tabs below. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Colorado Mining paid $620,400 to acquire a mine with 833,000 tons of coal reserves. The horizontal statements model reflects Colorado Mining's financial condition just prior to purchasing the coal reserves. The company extracted 437,325 tons of coal in Year 1 and 374,850 tons in Year 2. Required a. Compute the depletion charge per unit. b. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. c. Prepare the general journal entries to record the depletion expense for years 1 and 2 . Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare the general journal entries to record the depletion expense for years 1 and 2 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round depletion charge per unit to two decimal places. Round your final answers to the nearest whole dollar.)

Answer & Explanation Solved by verified expert

See Answer