Bedrock Quarry paid $507,800 for the right to extract mineral assets from a 500,000-ton deposit.

In addition to the purchase price, Bedrock Quarry also paid a $500 filing fee, a $1,900 license fee to the state, and $80,000 for a geological survey of the property.

Because Bedrock Quarry purchased the rights to the minerals only, it expects the asset to have zero residual value.

During the first year, Bedrock removed and sold 80,000 tons of the minerals.

Total Cost of Minerals

Description	Amount
Subcategory,
Purchase price of minerals
Subcategory,Add related costs:
Filing fee
License
Geological survey	Single line
Total Related Costs	Single lineSingle line
Total cost of minerals	Single lineDouble line

Depletion per unit. (Round to two decimal places when needed and use rounded answer for calculations).

(Cost - Res. Value)/Units = Depletion per unit
( - )/= per unit

Depletion expense

Depletion per unit x Units used
x =

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.

Journal

Date	Description	Debit	Credit
a	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense
a	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense
b	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense
b	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense
c	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense
c	A/PA/RAccumulated Depletion-MineralsCashDepletion Expense-MineralsMineralsMinerals Expense