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Gold Mining Company has bought land containing an estimated 800,000 tonnes of ore (rock from...

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Accounting

Gold Mining Company has bought land containing an estimated 800,000 tonnes of ore (rock from which minerals can be extracted), at a total cost of $1,000,000. It estimates that once all the ore has been extracted, the land will have zero residual value. If 200,000 tonnes were mined and sold in the first year, what is the journal entry to record the depletion expense?

Select one:

a. Debit Accumulated Depletion $250,000; credit Depletion Expense $250,000

b. Debit Depletion Expense $200,000; credit Accumulated Depletion $200,000

c. Debit Depletion Expense $250,000; credit Accumulated Depletion $250,000

d. Debit Accumulated Depletion $200,000; credit Depletion Expense $200,000

Calculate total asset turnover and return on assets based on the following:

Net Income $15.0 million
Sales 68.0 million
Total Assets, beginning of the year 14.6 million
Total Assets, end of the year 17.1 million

Select one:

a. 3.98 and 88%

b. 4.53 and 95%

c. 4.29 and 95%

d. 4.29 and 9.5%

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