rchased a piece of property with sand deposits for estimated that the deposits contained 3,000,000 cubic yards of sand, which n, Gardenia decided to build On January 3, 20x8, the Gardenia Company pu $8,400,000. Gardenia ne, the land will be worth approximately $900,000 is used for making concrete. After the sand is go In additio The equipment required to extract the sand costs $2,500,000. house the administrative office on site and a small dining area which has an estimated useful life a small building on the property to for the workers. The building cost $325,000 and will have no value after its estimated usefiu eight years. It cannot be moved from the site. The equipment, of ten years has no salvage value and also cannot be removed from the site. T company for hauling the sand rucks, used by the once it has been extracted, were purchased at a total cost of $700,000 estimateduseful life of seven years with a salvage value of 10% of their cost. The t other sites. Gardenia estimated that in six years all the sand would be removed t down at this site. During 20X8,900,000 cubic yards - and have an trucks are usable a from the site and operations would then be shu of sand were removed and 800,000 cubic yards were sold at a price of S12 a cubic yard. REQUIRED: (1) Prepare, in proper general journal form, the journal entries that would be required to record the purchase of the assets used in extracting the sand. Assume that all purchases were made on account. Omit explanations. Prepare, in proper general journal form, the adjusting entries to record the depletion and depreciation expense for the first year of its operations, 20X8 The company uses straight line depreciation for book purposes for all of its assets. (2) Compute the cost of goods sold, ending inventory in dollars, and the gross margin that the company should recognize for 20X8 for this sand operation. (3)