Sierra Mountain Mining paid $286,700 for the right to extract mineral assets from a 300.000-ton deposit. In addition to

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Sierra Mountain Mining Paid 286 700 For The Right To Extract Mineral Assets From A 300 000 Ton Deposit In Addition To 1 (34.15 KiB) Viewed 12 times

Sierra Mountain Mining paid $286,700 for the right to extract mineral assets from a 300.000-ton deposit. In addition to the purchase price, Sierra also paid a $1,200 Ming fee, a $2,100 license fee to the state of Nevada, and $70,000 for a geological survey of the property. Because Sierra 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, Sierra removed and sold 20.000 tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table Begin by journalizing (a) the purchase of the minerals (debit Mineral assot). (Do not record payment for any additional costs associated with the minerals. We will do this in entry b.) Date Help me solve this Type here to search Accounts and Explanation Etext pages B CERD Get more help. Debit Credit Clear all Check answer 224 11AM 74/2002