Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. nero mines paid $427,000 for the right to extract

Nero Mines paid $427,000 for the right to extract ore from a 300,000-ton mineral deposit....

60.1K

Verified Solution

Question

Accounting

Nero Mines paid $427,000 for the right to extract ore from a 300,000-ton mineral deposit. In addition to the purchase price, Nero Mines paid a $125 filing fee to the country recorder, a $2,200 license fee to the state of Colorado, and $65,675 for a geologic survey. Because the company purchased the rights to the minerals only, it expects this mineral rights asset to have a residual value of zero when it is fully depleted. During the first year of production, Nero Mines removed 45,000 tons of ore, of which it sold 39,000 tons.
Read the requirement.
(a) Record the purchase of the mineral rights. (Record debits first, then credits. Exclude explanations from any journal entries. Do not record the payment of fees and other costs, they will be recorded in transaction (b).)
Journal
Date
Accounts
Debit
Credit
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

The functions u and w are defined as follows u x 2x 2 w x...

Biology
1.2K views

Explain how a pathogen can escape your innate immune defenses.

Advance Math
1.2K views

This is the full question Consider a‘‘duel’’ between two players. Let’s call these players H and D.Now,we...

Biology
1.2K views

After the growing process pesticide residues may remain on food products Which foods have been...

Physics
1.2K views

Three particles of different masses and velocities collide with each other and stick together to...

Physics
1.2K views

Consider the cube shown A point charge 8q is placed at a vertex G of...

Basic Math
1.2K views

A Ferris wheel has a radius of 42.4 feet. The bottom of the Ferris wheel...

Accounting
1.2K views

a. Net income was $468,000. b. Issued common stock for $73,000 cash. c. Paid cash...

Accounting
1.2K views

Prepare an income statement (from the adjusted trial balance in part 3) for the three...

Accounting
1.2K views

The net unrealized gain/loss at December 31, 2020 in accumulated other comprehensive income in shareholders'...

Accounting
1.2K views

CH 2 #18 If you could help me solve 1-3 that would be great!...

Accounting
1.2K views

Requirement 1. Culculate the amount of monthly depeeciasion expense for the computer and office furniture...