Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please provide correct answers for each of the required questions... thumbs up will follow. On July 23 of the current year, Dakota Mining Co. pays

please provide correct answers for each of the required questions... thumbs up will follow. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On July 23 of the current year, Dakota Mining Co. pays $6,390,000 for land estimated to contain 9,000,000 tons of recoverable ore. It installs and pays for machinery costing $1,530,000 on July 25. The company removes and sells 461,500 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 Record the cost of the ore mine of $6,390,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jul 23 Record the cost of the machinery of $1,530,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jul 25 Select formula for Units of Production Depletion: Calculate depletion expense: Depletion per ton Tonnage Depletion expense Select formula for Units of Production Depreciation: Calculate Depreciation expense: Depreciation per ton Tonnage Depreciation expense Record the year-end adjusting entry for the depreciation expense of the machinery. Note: Enter debits before credits. Debit Credit Date General Journal Dec. 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions