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Montana Mining Company pays $4,155,010 for an ore deposit containing 1.571,000 tons. The company installs machinery in the mine costing $233,600. Both the ore and
Montana Mining Company pays $4,155,010 for an ore deposit containing 1.571,000 tons. The company installs machinery in the mine costing $233,600. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 144,700 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 (Do not round intermediate calculations, Round your final answers to the nearest whole number.) No View transaction list View journal entry worksheet Dato General Journal 1 December 31 Depletion expense. Mineral deposit Accumulated depletion --Mineral deposit Debit Credit 382,008 382,008 2 December 31 21,705 Depreciation expense Machinery Accumulated depreciation Machinery 21,705
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