Seven Co. owns a coal mine with an estimated 1,000,000 tons of available coal. It was purchased for $300,000 and has $50,000 salvage value.

Trio Co. reported that maintenance and repair costs are expensed as incurred. If Trio's current year
machinery and equipment repair costs are $8,200, which accounts would be Impacted to complete
the journal entry? (Check all that apply.)

Credit Repairs expense.
Debit Repairs expense.
Credit Machinery & equipment
Debit Machinery & equipment
Credit Cash.
Debit Cash.


The process of allocating the cost of a natural resource to a period when it is consumed requires a debit
entry to the Depletion Expense account.


Seven Co. owns a coal mine with an estimated 1,000,000 tons of available coal. It was purchased for
$300,000 and has $50,000 salvage value. During the current period, Seven mined and sold
200,000 tons of coal. Depletion expense for the period will be how much?

$30,000

$60,000

$50,000 

____ are expenditures that make a plant asset more efficient or productive, but do not always

increase an asset's useful life. 

Revenue expenditures

Ordinary repairs

Extraordinary repairs

Betterments 

Ion Co. purchased land for $190,000. Ion also paid $5,000 in brokerage fees, $1,000 in legal fees,

and $500 in title costs. Ion should record the cost of this land to be: 

$196,500

$190,000

$195,500

$196,000

$195,000