Question
In: Accounting
Bearcreek Mines paid $433,000 for the right to extract ore from a 450,000-ton mineral deposit. In...
Bearcreek Mines paid $433,000 for the right to extract ore from a 450,000-ton mineral deposit. In addition to the purchase price, Bearcreek Mines paid a $155 filing fee to the county recorder, a $2,800 license fee to the state of Utah, and $95,045 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, Bearcreek Mines removed 75,000 tons of ore, of which it sold 72,000 tons. Make journal entries to record
(a) Purchase of the mineral rights,
(b) Payment of fees and other costs,
(c) Depletion for first-year production,
(d) Cost of the ore sold. Round depletion per unit to the closest cent.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit...
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase
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company has mineral rights. An engineering and cost analysis has
been made, and it is expected that the following cash flows would
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of new equipment and timbers $ 430,000 Working capital required $
215,000 Annual net cash receipts $ 150,000 * Cost to construct new
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Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit...
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase
of equipment to exploit a mineral deposit on land to which the
company has mineral rights. An engineering and cost analysis has
been made, and it is expected that the following cash flows would
be associated with opening and operating a mine in the area:
Cost of new equipment and timbers
$
410,000
Working capital required
$
135,000
Annual net cash receipts
$
150,000
*
Cost to construct new roads in...
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit...
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase
of equipment to exploit a mineral deposit on land to which the
company has mineral rights. An engineering and cost analysis has
been made, and it is expected that the following cash flows would
be associated with opening and operating a mine in the area:
Cost of new equipment and timbers
$
370,000
Working capital required
$
115,000
Annual net cash receipts
$
130,000
*
Cost to construct new roads in...
Universal Mines Inc. operates three mines in West Virginia. The ore from each mine is separated...
Universal Mines Inc. operates three mines in West Virginia. The
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well as their daily operating costs, are as follows:
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Low-grade Ore, Tons/day
Operating Cost in $/day
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4
4
20,000
Mine II
6
4
22,000
Mine III
1
6
18,000
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Mining companies extract iron from iron ore according to the following balanced equation: Fe2O3(s)+3CO(g)→2Fe(s)+3CO2(g) In a...
Mining companies extract iron from iron ore according to the
following balanced equation: Fe2O3(s)+3CO(g)→2Fe(s)+3CO2(g) In a
reaction mixture containing 169 g Fe2O3 and 59.4 g CO, CO is the
limiting reactant.
Part A Calculate the mass of the reactant in excess (which is
Fe2O3) that remains after the reaction has gone to completion.
Express the mass with the appropriate units.
Mining companies extract iron from iron ore according to the following balanced equation: Fe2O3(s)+3CO(g)→2Fe(s)+3CO2(g) In a...
Mining companies extract iron from iron ore according to the
following balanced equation: Fe2O3(s)+3CO(g)→2Fe(s)+3CO2(g) In a
reaction mixture containing 179 g Fe2O3 and 61.8 g CO, CO is the
limiting reactant. Part A Calculate the mass of the reactant in
excess (which is Fe2O3) that remains after the reaction has gone to
completion. Express the mass with the appropriate units.
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