Question

Depletion Entries Alaska Mining Co, acquired mineralights for $67,500,000. The mineral deposit is estimated at 30.000.000 tons. During the current year 4,000,000 tons were mined and sold a. Determine the amount of depletion expense for the current veat. Round the depletion rate to two decimal places IIIIM b. Deurnalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry leave it blank Dec. 31 Previous Next > Check My Work more Check My Works remaining

can you help me solve these two problems please

Answer 1

Answer of Part 1-a: Depletion per ton = $67,500,000 / 30,000,000 Depletion per ton = $2.25 per ton Depletion Expense = No. of tons sold * Depletion per ton Depletion Expense = 4,000,000 * $2.25 Depletion Expense = $9,000,000 Answer of Part 1-b: Credit Date Dec. 31 Accounts Titles & Explanation Depletion Expense Accumulated Depletion Debit 9,000,000 9,000,000