The mine is estimated to has a salvage value of $500,000 at the end of its life. Prepare the general journal entry to record the end of the year adjusting entry if Flipper uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense. 45.)Which of the following does not correctly describe an adjusting journal entry that debits interest expense and credits interest payable? It increases expenses and decreases retained earnings. The journal entry to write off an account judged to be uncollectible under the allowance would include a debit to __________. Accounts receivable.

Record the journal entries needed for the following adjustments. Depreciation expense of journal entry for depletion $19,000. Accrual of $6,000 interest revenue. Accrual of $13,000 consulting expense.

Equipment Used To Extract Natural Resources

Cannon Mountain Mining paid $462,300 for the right to extract mineral assets from a 400,000-ton deposit. In addition to the purchase price, Cannon also paid a $900 filing fee, a $1,800 license fee to the state of Nevada, and $55,000 for a geological survey of the property. Because Cannon 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, Cannon removed and sold 50,000 tons of the minerals.

Adjustment entries are made at the end of the year for the previous year’s depletion in cost or percentage. Depletion is based on sales and not on the production of a company. Depletion is the process of allocating the depletable cost of natural resources to expense as individual units of the resource are extracted. Depletable cost equals the total cost of natural resources less any salvage value remaining after the company finishes extracting them. Depletion expense is generally calculated using the units‐of‐activity method.

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Under this method, a per‐unit cost of depletion is found by dividing the depletable cost by the estimated number of units the resource contains. The per‐unit cost times the actual number of units extracted and sold in one year equals the amount of depletion expense recorded for the asset during that year. Depletion is the allocation of the cost of the natural resource to the unites extracted.

Recognition of $7,500 of revenue initially recorded as unearned. A government pays $260,000 in construction expenditures. Provide an example of the journal entry to record these expenditures in the capital projects funds. What is overhead? What items are included in overhead?

Depletion for Tax Purposes

Sampsell’s contribution to the plan during 2017 was $180,000. Prepare Sampsell’s 2017 entry to record a postretirement expense, assuming Sampsell has no OCI amounts. Is the computer paper used in an accounting firm classified as a product cost or a period cost? The value derived will be divided by a total estimated number of product units. Depletion Expense Debit Accumulated Depletion Credit The previous video gave us a demonstration of the accounting process for depletion but we will review it here. Depletion ExpenseDebitAccumulated DepletionCreditThe previous video gave us a demonstration of the accounting process for depletion but we will review it here.