On July 23 of the current year, Dakota Mining Company pays $7,533,600 for land estimated to contain 8,760,000 tons of recoverable ore. It installs and pays for machinery costing $1,839,600 on July 25. The company removes and sells 450,750 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.
- The purchase of the land.
- The cost and installation of machinery.
- The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
- The first five months' depreciation on the machinery.
- If the machine will be used at another site when extraction is complete, how would we depreciate this machine?
Required information [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $7,533,600 for land estimated to contain 8,760,000 tons of recoverable ore. It installs and pays for machinery costing $1,839,600 on July 25 . The company removes and sells 450,750 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. (a) The purchase of the land. (b) The cost and instailation 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 the purchase of the land. Journal entry worksheet Record the cost of the ore mine of $7,533,600 cash. Note: Enter debits before credits. Prepare the journal entry to record the cost and installation of machinery. Journal entry worksheet Record the cost of the machinery of $1,839,600 cash. Note: Enter debits before credits. Record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. Note: Round your "Depletion per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar. Prepare the journal entry to record depletion of the Mineral deposit at December 31. Note: Round your "Depletion per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar. Journal entry worksheet Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Record the first five months' depreciation on the machinery. Note: Round your "Depreclation per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar. repare the journal entry to record depreciation of the machine at December 31 . Note: Round your "Depreciation per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of the machinery. Note: Enter debits before credits. Required information [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $7,533,600 for land estimated to contain 8,760,000 tons of recoverable ore. It installs and pays for machinery costing $1,839,600 on July 25 . The company removes and sells 450,750 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. (e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine
