Kryan Corp Required:
Record the Journal Entries in 2021 and 2022 Relating

question 46

Essay

Kryan Corp. mines and produces aluminum. During 2021, the company explored two new sites and evaluated them for aluminum ore potential. By the December 31, 2021 year-end, both sites remained in the evaluation stage. During 2022, evaluation of site Apollo was completed and the site was deemed to have sufficient quantities of ore; consequently, development of the site began. However, site Braeden was determined to have ore concentrations too low to be commercially viable. The following is the cost of exploration and evaluation incurred on the two sites:
$$\begin{array} { | l | r | r | } \hline & 2021 & 2022 \\\hline \text { Apollo (A Site) } & \$ 1,569,000 & \$ 1,560,000 \\\hline \text { Braeden (B Site) } & \underline { 550,000 } & \underline { 1,275,000 } \\\hline & \$ 2,119,000 & \$ 2,835,000 \\\hline\end{array}$$ Required:
Record the journal entries in 2021 and 2022 relating to the exploration and evaluation costs using the successful efforts method. Assume that Kryan has a policy of capitalizing the costs of exploration and evaluation.

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Definitions:

Hans Eysenck

A psychologist known for his work in the field of personality theory, emphasizing the genetic basis of personality and intelligence.

Neurotic

Refers to an individual's tendency to experience negative emotional states, such as anxiety, depression, or anger, more frequently or intensely than what is considered normal.

Identical Twins

Twins who originate from a single fertilized egg that splits and develops into two embryos, sharing the same genes and often having very similar appearances and traits.

Nescience

Lack of knowledge or awareness; ignorance.