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Business, 18.06.2020 00:57 brooklyns357
Coal Train Mines paid $ 435 comma 000 for the right to extract ore from a 225,000​-ton mineral deposit. In addition to the purchase​ price, Coal Train Mines also paid a $ 115 filing fee to the country​ recorder, a $ 2,000 license fee to the state of​ Colorado, and $ 69,135 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, Coal Train Mines removed 48,000 tons of​ ore, of which it sold 45,000 tons.
Required:
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. sales of ore.
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Coal Train Mines paid $ 435 comma 000 for the right to extract ore from a 225,000​-ton mineral dep...
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