Binari Mining Company purchased a site containing a mineral deposit during 2019. The purchase price was RM820,000, and the site is estimated to contain 400,000 tons of extractable ore. Binari constructed a building at the site, at a cost of RM500,000, to be used while the ore is being extracted. When the ore reserves are gone, the building will have no further value. Required:

a. Explain the objective of recording depletion of natural resources.
(2 marks)

b. Determine Binari's depletion rate per ton of ore.
(2 marks)

c. Prepare the journal entry to record depletion for the year 2019, when Binarimined and sold 150,000 tons of ore.

(2 marks)

d. Prepare the journal entry to record depreciation on the building for 2019. Binari calculates depreciation on the building using the units-of-production method based on the amount of ore extracted (150,000 tons in 2019).
(2 marks)

Expert computers was started in 2018. the company experienced the following accounting events during its first year of operation: started business when it acquired $40,000 cash from the issue of common stock. purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. paid off one-half of the accounts payable balance within the discount period. sold merchandise on account for $28,000. credit terms were 1/20, n/30. the merchandise had cost expert computers $16,000. collected cash from the account receivable within the discount period. paid $2,100 cash for operating expenses. paid the balance due on accounts payable. the payment was not made within the discount period. required record the events in a horizontal statements model below. in the cash flows column, use the letters oa to designate operating activity, ia for investing activity, fa for financing activity, or nc for net change in cash. if the account is not affected by the event, leave the cell blank. the first event is recorded as an example. what is the amount of gross margin for the period? what is the net income for the period?