On July 23 of the current year, Dakota Mining Co. pays $7,380,000 for land estimated to contain 9,000,000 tons of recoverable ore. It installs and pays for machinery costing $810,000 on July 25. The company removes and sells 463,500 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. 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.

Prepare the journal entry to record depletion of the Mineral deposit at December 31.

No	Date	General Journal	Debit	Credit
1	Dec. 31	Depletion expenseMineral deposit	0
		Accumulated depletionMineral deposit

To record the first five months' depreciation on the machinery.

Select formula for Units of Production Depreciation:
(Cost - Salvage) / Total units of production
Calculate Depreciation expense:
Depreciation per ton
Tonnage
Depreciation expense

ournal entry worksheet

• Record the year-end adjusting entry for the depreciation expense of the machinery.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec. 31	Depreciation expenseMachinery
	Accumulated depreciationMachinery