Journal Entries Assignment | Top Universities

Canyon Mines paid $425,000 for the right to extract ore from a 250.000-ton mineral deposit In addition to the purchase price, Canyon Mines also paid a $110 filing fee, a $2,000 license fee to the state of Colorado, and $55,390 for a geologic survey of the property Because the company purchased the rights to the minerals only, it expects the asset to have zero residual value when fully depleted During the first year of production, Canyon Mines removed 35,000 tons of ore, of which it sold 28,000 tons

Requirement 1. Make journal entries to record (a) purchase of the mineral rights, (b) payment of fees and other costs, (c) depletion for first-year production, and (d) sales of ore Round depletion per unit to the closest cent (Record debits first, then credits Exclude explanations from any journal entries) (a) Record the purchase of the mineral rights (Do not record the payment of fees and other costs, they will be recorded in transaction (b)) Journal. Get Accounting Homework Help Today.