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 $6,541,200 for land estimated to contain 8,280,000 tons of recoverable ore. It installs and pays for machinery costing $1,324,800 on July 25. The company removes and sells 426,250 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: 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. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record the purchase of the land. No Date General Journal Debit Credit 1 Jul 23 6,541,200 Depletion expenseMineral deposit Accumulated depletionMineral deposit 6,541,200 Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to record the cost and installation of machinery. No Date General Journal Debit Credit 1 Jul 25 1,324,800 Depreciation expenseMachinery Accumulated depreciation-Machinery 1,324,800 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: 0.79 Calculate depletion expense: Depletion per ton Tonnage Depletion expense 426,250 336,738 $ Required A Required B Required C1 Required C2 Required D1 Required D2 To record the first five months' depreciation on the machinery. Select formula for Units of Production Depreciation: (Cost - Salvage) / Total units of production Calculate Depreciation expense: Depreciation per ton $ 0.79 X Tonnage 828,000 X Depreciation expense $ 345,000 X 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. No Date General Journal Debit Credit 1 Dec. 31 345,000 X Depreciation expense-Machinery Accumulated depreciationMachinery 345,000 X