E9-11.On July 1, 2015, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of o

  E9-11.On
July 1, 2015, Friedman Inc. invested $720,000 in a mine estimated to have
900,000 tons of ore of uniform grade. During the last 6 months of 2015, 100,000
tons of ore were mined and sold.

Instructions
a)
Prepare
the journal entry to record depletion expense.
b)
Assume
that the 100,000 tons of ore were mined, but only 80,000 units were sold. How
are the costs applicable to the 20,000 unsold units reported?

E10-12.Whitmore
Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2015. The bonds
pay interest twice a year.

Instructions
a)
(1)
Prepare the journal entry to record the issuance of the bonds.
(2)
Compute the total cost of borrowing for these bonds.
b)
Repeat
the requirements from part (a), assuming the bonds were issued at 105.

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