Prepare the journal entry to record the harvesting of trees

Assignment Help Cost Accounting

Reference no: EM13938432

DEPLETION OF TIMBER

Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,500,000 pine trees that, when mature, can be used for utility poles. Bedford paid $900 per acre for the timberland. The land has a residual value of $180 per acre when all the trees are harvested. During 2009, Bedford harvested 150,000 trees.

Required:

1. Compute the depletion per tree.

2. Prepare the journal entry to record the harvesting of the trees for 2009.

Reference no: EM13938432

Questions Cloud

What is the cost of common stock for whitewall : Whitewall Tire Co. just paid an annual dividend of $1.35 on its common shares. If Whitewall is expected to increase its annual dividend by 3.00 percent per year into the foreseeable future and the current price of Whitewall’s common shares is $14.73,..

Case study- walmart manages ethics and compliance challenges : Case Study: Walmart Manages Ethics and Compliance Challenges, Examine the manner in which Walmart's business philosophy has impacted its perception of being unethical towards supply and employee stakeholders. Provide one (1) example of Walmart in a..

Use account analysis to estimate fïxed and variable costs : Explain how to use account analysis to estimate Fïxed and variable costs.

Considering a project with an initial fixed asset cost : Gateway Communications is considering a project with an initial fixed asset cost of $2.46 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment is scrapped.

Prepare the journal entry to record the harvesting of trees : Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. Compute the depletion per tree. Prepare the journal entry to record the harvesting of the trees for 2009.

Equipment has investment opportunity in europe : Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.7 million in Year 1, €2.1 million in Year 2, and €3.2 million in Year 3. The appropriate discount rate for the pro..

Smart shopping trolley system for grocery-supermarket chain : As the Information Systems Manager you have been given the responsibility for implementing a new "smart shopping trolley" system for a grocery/supermarket chain.

Share on common stock and is expected to increase : Upper Crust Bakers just paid an annual dividend of $2.80 a share on its common stock and is expected to increase that dividend by 4 percent per year for the foreseeable future. If the discount rate on Upper Crust is 11.50 percent, what is the current..

What is a memory location : Assume that memory location 1200 is allocated for p and memory location 1800 is allocated for num.

User Account

All Pages