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 $6,318,000 for land estimated to contain 7,800,000 tons of recoverable ore. It installs and pays for machinery costing $468,000 on July 25 . The company removes and sells 399.500 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: Prepare entries to record the following. (Do not round your intermediate calculations. Round "Depletion per ton" to two decimal ploces and round all other answers to the nearest whole dollor.) (o) The purchase of the land (b) The cost and installation of machinery. (c) The first five month' 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. Prepare the journal entry to record the purchase of the land. Journal entry worksheet Record the cost of the ore mine of $6,318,000 cash. Note: Enter debits before credits. Prepare the joumal entry to record the cost and installation of machinery. Journal entry worksheet Record the cost of the machinery of $468,000 cash. Note: Enter debits before credits. To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. Prepare the journal entry to record depletion of the Mineral deposit at Decernber 31 . Journal entry worksheet Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits To record the first five months' depreciation on the machinery. Prepare the journal entry to record depreciation of the machine at December 31 . Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of the machinery. Note: Enter debits before credits. 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 $6,318,000 for land estimated to contain 7,800,000 tons of recoverable ore. It installs and pays for machinery costing $468,000 on July 25 . The company removes and sells 399,500 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
