Required information (The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Co. pays $7,852,320 for land estimated to contain 9,576,000 tons of recoverable ore. It installs and pays for machinery costing $2,106,720 on July 25. The company removes and sells 493,750 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. 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. 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 purchase of the land. View transaction list Journal entry worksheet 1 > Record the cost of the ore mine of $7,852,320 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jul 23 Record entry Clear entry View general Journal 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 1 Record the cost of the machinery of $2,106,720 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jul 25 Record entry Clear entry View general Journal 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 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. 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 Dec. 31 Debit Credit Record entry Clear entry View general Journal Required A Required B Required ci Required C2 Required D1 Required D2 To record the first five months' depreciation on the machinery. Select formula for Units of Production Depreciation: Calculate Depreciation expense: Depreciation per ton Tonnage Depreciation expense 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 Debit Credit Date Dec. 31 Record entry Clear entry View general Journal
