Roscoe Corp was organized on January 2 2015 It was

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Roscoe Corp. was organized on January 2, 2015. It was authorized to issue 74,000 shares of
common stock. On the date of organization, it sold 20,000 shares at $50 per share and gave the
remaining shares in exchange for certain land-bearing recoverable ore deposits estimated by
geologists at 900,000 tons. The property is deemed to have a value of $2,700,000 with no
residual value.During 2015, purchases of mine buildings and equipment totaled $250,000.
During the year, 75,000 tons were mined; 8,000 tons of this amount were unsold on December
31, the balance of the tonnage being sold for cash at $17 per ton. Expenses incurred and paid
for during the year, exclusive of depletion and depreciation, were as follows:Mining . . . . . . . . . .
. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $173,500Delivery . . . . . . . . . . .. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000General and administrative .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,500Cash dividends of $2 per share
were declared on December 31, payable January 15, 2016.It is believed that buildings and
sheds will be useful only over the life of the mine; hence, depreciation is to be recognized in
terms of mine output.Instructions:Prepare an income statement and a balance sheet for 2015.
Ignore income taxes.View Solution:
Roscoe Corp was organized on January 2 2015 It was

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