Required information Problem 10-7A (Algo) Natural resources LO P3 (The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Company pays $8,331,120 for land estimated to contain 9,576,000 tons of recoverable ore. It installs and pays for machinery costing $670,320 on July 25. The company removes and sells 494,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Required information Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record the purchase of the land. View transaction list Journal entry worksheet Record the cost of the ore mine of $8,331,120 cash. Note: Enter debits before credits. Date General Journal Debit Credit July 23 Required information 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 Journal entry worksheet Record the cost of the machinery of $670,320 cash. Note: Enter debits before credits. Date General Journal Debit Credit July 25 Required information Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (Round your "Depletion per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar.) Select formula for Units of Production Depletion: Calculate depletion expense: Depletion per ton Tonnage Depletion expense Required information Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record depletion of the Mineral deposit at December 31. (Round your "Depletion per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Required information Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Record the first five months' depreciation on the machinery. (Round your "Depreciation per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar.) Select formula for Units of Production Depreciation: Calculate Depreciation expense: Depreciation per ton Tonnage Depreciation expense Required information Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record depreciation of the machine at December 31. (Round your "Depreciation per ton" answer to 2 decimal places and round all other answers to the nearest whole dollar.) 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. Date General Journal Debit Credit December 31
