Problem 10-7A (Algo) Natural resources LO P3

On July 23 of the current year, Dakota Mining Company pays $7,976,400 for land estimated to contain 9,384,000 tons of recoverable ore. It installs and pays for machinery costing $2,346,000 on July 25. The company removes and sells 484,500 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.

Problem 10-7A (Algo) Part 1-4

Required:

Prepare entries to record the following.

(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 first five months' depreciation on the machinery. Note: Round your "Depreciation per ton" answer to 2 decimal places and round all other answers to the nearest whol Prepare 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 Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of the machinery. Note: Enter debits before credits