Accounting 121 ch 10-7
\fOn July 23 of the current year, Dakota Mining Co. pays $7,078,800 for land estimated to contain 8,328,000 tons of recoverable ore. It installs and pays for machinery costing $1,582,320 on July 25. The company removes and sells 428,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Problem 10-7A Part 1-4 Required: Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal places and round all other answers to the nearest whole dollar.) (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record the purchase of the land. View transaction list Journal entry worksheet Record the cost of the ore mine of $7,078,800 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jul 23Problem 10-7A Natural resources LO P3 [The following information applies to the questions displayed below. On July 23 of the current year, Dakota Mining Co. pays $7.078,800 for land estimated to contain 8,328,000 tons of recoverable ore. It installs and pays for machinery costing $1,582,320 on July 25. The company removes and sells 428,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Problem 10-7A Part 1-4 Required: Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal places and round all other answers to the nearest whole dollar.) (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record the cost and installation of machinery. View transaction list Journal entry worksheet Record the cost of the machinery of $1,582,320 cash. debits before creditsProblem 10-7A Natural resources LO P3 The following information applies to the questions displayed below On July 23 of the current year, Dakota Mining Co. pays $7.078,800 for land estimated to contain 8,328,000 tons of recoverable ore. It installs and pays for machinery costing $1,582 320 on July 25. The company removes and sells 428.000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined." Problem 10-7A Part 1-4 Required: Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal places and round all other answers to the nearest whole dollar) (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined (d) The first five months' depreciation on the machinery. Complete this question by entering your answers in the tabs below. Required A Required B Requill C1 Required C2 Required D1 Required D2 To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. Select formula for Units of Production Depletion: (Cost - Salvage) / Total units of production Calculate depletion expense Depletion per ton Tonnage Depletion expense Required B Required C2 >
