Requlred Information

Problem $8-7$A $($Algo$)$ Natural resources LO P$3$

$[$The following information applies to the questions displayed below$]$

On July $23$ of the current year, Dakota Mining Company pays $$7,074,000$ for land estimated to contain $9,432,000$ tons of recoverable ore. It installs and pays for machinery costing $$1,037,520$ on July $25.$ The company removes and sells $484\mathrm{.}250$ tons of ore during its first five months of operations ending on December $31.$ Depreclation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.

Problem $8-7$A $($Algo$)$ Part $1-4$

Requlred:

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' depreclation on the machinery.

Complete this question by entering your answers in the tabs below.

Journal entry worksheet