Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model.
Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, or FA for financing activity. If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount. Not all cells will require entry.
COLORADO MINING
Horizontal Statements Model
Balance Sheet
Assets
Cash
+
Coal
Reserves
Liabilities
+
Stockholders' Equity
Common
Stock
+
Retained
Earnings
Income Statement
Revenue
Expenses
Net
Income
Statement of Cash
Flows
Acquisition of coal reserves
722,700 +
+
473,000 +
473,000 =
722,700 +
+
=
Depletion for Year 1
Depletion for Year 2
+
+