Exercise $8-19($Algo$)$ Depletion of natural resources LO P$3$

Montana Mining Company pays $$4,587,940$ for an ore deposit containing $1,403,000$ tons. The company installs machinery in the mine costing $$187,200.$ Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells $130,900$ tons of ore during the year.

Prepare the December $31$ year$-$end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.

Journal entry worksheet

$1$

$2$

Record the year$-$end adjusting entry for the depletion expense of ore mine.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,,,],[,,,],[,,,],[,,,],[,,,]]$