Lucky Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined.

Crediting an expense account decreases it.

Belcher Inc. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. The journal entry to replenish the fund on January 31 is:

Tallahassee Recording Studio purchased $7,800 in electronic components from Music Unlimited. Tallahassee signed a 60-day, 8% promissory note for $7,800. Music Unlimited’s journal entry to record the sales transaction is:

Accrued revenues at the end of one accounting period are expected to result in cash collections in a future period.

Given the following errors, identify the one by itself that will cause the trial balance to be out of balance.

Miami Mining purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Miami Mining paid within the discount period.

Miami Mining acquires a granite quarry at a cost of $590,000, which is estimated to contain 200,000 tons of granite and is expected to take 6 years to remove. What journal entry would be needed to record the expense for the first year assuming 38,000 tons were removed and sold?

The total amount of depreciation recorded against an asset over the entire time the asset has been owned:

Wild Wings had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.