Problem 8-7A Natural resources LO P3 The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Co. pays $5,640, 240 for land estimated to contain 7,944,000 tons of recoverable ore. It installs and pays for machinery costing $1.429,920 on July 25. The company removes and sells 408,500 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 8-7A Part 1-4 Required: Prepore 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 Complete this question by entering your answers in the tabs below. Required A Required Required i Required C2 Required 01 Required D2 De Laos berow. Required A Required B Required C1 Required C2 Required Di Required D2 Prepare the journal entry to record the purchase of the land. View transaction list View journal entry worksheet NO Date General Journal Debit Credit 1 Jul 23 Land 5,840, 240 Cash 5,840,240 Required 8 > Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the Journal entry to record the cost and installation of machinery. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jul 25 1,429,920 Machinery Cash 1,429,920 Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. Select formula for Units of Production Depletion: Calculate depletion expense: Depletion per ton Tonnage Depletion expense non Required A Required B Required CI Required a Required DI Recured 02 Prepare the journal entry to record depletion of the Mineral deposit at December 31 Vlow transaction list Journal entry worksheet > Record the year-end adjusting entry for the depletion expense of ore mine Note Enter debitabatore credits General Journal Debit Credit Data Dec 31 Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required Di Required D2 To record the first five months' depreciation on the machinery. Select formula for Units of Production Depreciation: Calculate Depreciation expense Depreciation perton Tonnage Depreciation expense 11H Next > View transaction list Journal entry worksheet 1 Record the year-end adjusting entry for the depreciation expense of the machinery Note: Enter debits before credits General Journal Date Dec. 31 Dobit Credit Required information Problem 8-7A Natural resources LO P3 The following information applies to the questions displayed below! On July 23 of the current year, Dakota Mining Co, pays $5,640,240 for land estimated to contain 7.944,000 tons of recoverable ore. It installs and pays for machinery costing $1429,920 on July 25. The company removes and sells 408,500 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 8-7A Part 5 (e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine? Depreciated
