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Item 5

On July 23 of the current year, Dakota Mining Co. pays $6,473,520 for land estimated to contain 7,992,000 tons of recoverable ore. It installs machinery costing $959,040 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 408,500 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.

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) To record the purchase of the land. (b) To record the cost and installation of machinery. (c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) To record the first five months' depreciation on the machinery.

5 On July 23 of the current year, Dakota Mining Co. pays $6.473,520 for land estimated to contain 7.992000 tons of recoverable ore. It installs machinery costing $959,040 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 408,500 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. 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) To record the purchase of the land. (6) To record the cost and installation of machinery. (c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) To record the first five months' depreciation on the machinery Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required 2 Required D1 Required D2 To record the purchase of the land. General Journal Credit No 1 Date Jul 23 Debit 6,473.520 Land Cash 6,473.520 Required A Required B > To record depletion of the Mineral deposit at December 31. Credit No 1 Date Dec 31 General Journal Accumulated depreciation-Machinery Accumulated depletion Mineral deposit Debit 504,321 x 49.950 X To record the first five months' depreciation on the machinery. Select formula for Unite of Production Depreciation: (Cost-Salvage value) / Useful life in periods Calculate Depreciation experise IS Depreciation perton 6,473,520.00 Tonnage Depreciation expense IS 49.950 To record depreciation of the machine at December 31. NO Credit Date Dec 31 General Journal Accumulated depreciation-Machinery Debit 49.950 1 x