Mountain Mining paid

$362,500

for the right to extract mineral assets from a

350,000-ton

deposit. In addition to the purchase price,

Mighty

also paid a

$600

filing fee, a

$1,900

license fee to the state of Nevada, and

$55,000

for a geological survey of the property. Because

Mighty

purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the first year,

Mighty

removed and sold

20,000

tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Mighty Mountain Mining paid $362,500 for the right to extract mineral assets from a 350,000-ton deposit. In addition to the purchase price, Mighty also paid a $600 filing fee, a $1,900 license fee to the state of Nevada, and $55,000 for a geological survey of the property. Because Mighty purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the first year, Mighty removed and sold 20,000 tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (C) depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing (a) the purchase of the minerals (debit Mineral asset). (Do not record payment for any additional costs associated with the minerals. We will do this in entry b.) Date Accounts and Explanation Debit Credit a. Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts Clear All Check Answer remaining