During the 2022 financial year Rudge Park Pty Limited incurred the following explorations and evaluation costs for several areas of interest. However, Mackenzie turns out to be a dud, and Rudge Park concludes that they cannot make any money off the area of interest. Cost Mackenzie Cooper Exploration Permit $100,000 $300,000 Exploratory Drilling $300,000 $900,000 a) Record all relevant journal

Sep 8, 2023

During the 2022 financial year Rudge Park Pty Limited incurred the following explorations and evaluation costs for several areas of interest. However, Mackenzie turns out to be a dud, and Rudge Park concludes that they cannot make any money off the area of interest.

Cost Mackenzie Cooper
Exploration Permit $100,000 $300,000
Exploratory Drilling $300,000 $900,000

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During the 2022 financial year Rudge Park Pty Limited incurred the following explorations and evaluation costs for several areas of interest. However, Mackenzie turns out to be a dud, and Rudge Park concludes that they cannot make any money off the area of interest. Cost Mackenzie Cooper Exploration Permit $100,000 $300,000 Exploratory Drilling $300,000 $900,000 a) Record all relevant journal
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a) Record all relevant journal under AASB 6 as at 31 December 2022, Rudge Park’s financial year end.

b) During the 2023 financial year, Rudge Park Pty Limited begins operations in the Cooper area of interest.

  • As part of development, High Table spends $200,000 installing mining buildings.
  • The company expects operations will last for 10 years.
  • The company expects to mine a total of 1,000,000 tonnes of ore over the lifetime of the mine.
  • During the year, Rudge Park Pty Limited mines 100,000 tonnes of ore, each tonne sold at $10/tonne.

Record related journal entries as at 31 December 2023.

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