ZuoTi.Pro
Question

On July 23 of the current year, Dakota Mining Co. pays $7,390,320 for land estimated to contain 8,904,000 tons of recoverable ore. li installs machinery costing $801,360 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 458,250 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.

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.


ct.mheducati /flow/connect.html Help Save&Exit Subn Check my work Problem 10-7A Natural resources LO P3 On July 23 of the current year, Dakota Mining Co. pays $7,390,320 for land estimated to contain 8,904,000 tons of recoverable ore. It installs machinery costing $801.360 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 458.250 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mines 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 Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required DRequired D2 To record the purchase of the land.

(aj to recora tne nirst Tive montns aepreciation 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 то of the land Journal entry worksheet Record the cost of the ore mine of $7,390,320 cash. Jul 23 Prex 2 of 2 Next

Complete this question by entering your answers in the tabs below. Required ARequired B Required C1 Required C2 Required D1 Required D2 ok To record the cost and installation of machinery nt View transaction list nces Journal entry worksheet Record the cost of the machinery of $801,360 cash. Note: Enter debits before credits. Date Debit Credit Jul 25 Prev2 of 2 Next

0 Natural Resources (d) To record the first five months depreciation on the machinery To record the first five months depletion assuming the land has a net salvage value of zero after the ore is mined. per ton Required B

Natural Re es 31. View t Journal entry worksheet Record the year-end adjusting entry for the depletion expense of ore mine Date Dec 31

(d) To record the first five months depreciation on the machinery Complete this question by entering your answers in the tabs below. Required A Required B Required C1Required C2 Required D1 Required D2 To record the first five months depreciation on the machinery Calculate Depreciation expense Depreciation per ton Tonnage Depreciation expense < Required C2 Required D2>

Complete this question by entering your answers in the tabs below Required ARequired B Required C1 Required C2 Required D1 Required D2 To record depreciation of the machine at December 31. View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of the machinery. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31


business   accounting   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

EvenDate Account Title & Explanation Debit Credit A) Jul. 23Mineral deposit B) Jul. 25Machinery C) Dec. 31 Depletion Expense D) Dec. 31 Depreciation Expense 7,390,320 $801,360 $380,348 $41,243 Cash $7,390,320 Cash $801,360 [Ref: Workings] Accumulated Depletion Mineral deposit $380,348 [Ref: Workings] Accumulated Depreciation Equipment $41,243 Workings: Cost of Mineral Deposit Less: Salvage value Cost to be depleted Estimated mineral ore ton 8,904,000 Depletion per ton of ore Tons extracted (Tonnage 458, Depletion for 5 months $7,390,320 $0 $7,390,320 Cost of Machine Less: Salvage value Cost to be depleted Estimated mineral ore ton Depletion per ton of ore Tons extracted (Tonnage) Depreciation for 5 months $801,360 $0 $801,360 8,904,000 $0.83 [S7,390,320/ 8,904,000] $0.09 [$801,360/8,904,000] 458,250 $41,243 [$0.09 x 458,250] $380,348 [$0.83 x 458,250]

0 0
Add a comment
Know the answer?
Add Answer to:
On July 23 of the current year, Dakota Mining Co. pays $7,390,320 for land estimated to contain 8,904,000 tons of recoverable ore
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • On July 23 of the current year, Dakota Mining Co. pays $6,645,600 for land estimated to contain 8.520,000 tons of recoverable ore

    On July 23 of the current year, Dakota Mining Co. pays $6,645,600 for land estimated to contain 8.520,000 tons of recoverable ore. It installs machinery costing $681.600 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 437,500 tons of ore during its first five months of operations ending on December...

  • On July 23 of the current year, Dakota Mining Co. pays $4.715,000 for land estimated to contain 5,125,000 tons of recoverable ore

    On July 23 of the current year, Dakota Mining Co. pays $4.715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs and pays for machinery costing $410,000 on July 25. The company removes and sells 480,000 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.RequiredPrepare entries to record (a)...

  • on July 23 of the current year, Dakota Mining Co. pays $5,961,600 for land estimated to...

    on July 23 of the current year, Dakota Mining Co. pays $5,961,600 for land estimated to contain 8,280,000 tons of recoverable ore. It installs and pays for machinery costing $828,000 on July 25. The company removes and sells 426,500 tons of ore during its first five months of operations ending 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 information (The following information applies to the questions displayed below. On July 23 of the...

    Required information (The following information applies to the questions displayed below. On July 23 of the current year, Dakota Mining Co. pays $6,966,000 for land estimated to contain 9,288,000 tons of recoverable ore. It installs and pays for machinery costing $2,322,000 on July 25. The company removes and sells 479,500 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...

  • Check my work [The following information applies to the questions displayed below.] On July 23 of...

    Check my work [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs and pays for machinery costing $410,000 on July 25 The company removes and sells 480.000 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...

  • Required Information The following information applies to the questions displayed below On July 23 of the...

    Required Information The following information applies to the questions displayed below On July 23 of the current year, Dakota Mining Co. pays $6.383.520 for land estimated to contain 8,184,000 tons of recoverable ore. It insta s and pays for machinery costing $1063.920 on July 25. The company removes and sells 420,750 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 w...

  • Required information The following information applies to the questions displayed below) On July 23 of the...

    Required information The following information applies to the questions displayed below) On July 23 of the current year, Dakota Mining Co. pays $6,966,000 for land estimated to contain 9,288,000 tons of recoverable ore. It installs and pays for machinery costing $2,322,000 on July 25. The company removes and sells 479,500 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...

  • prepare entries to record the following...

    On July 23 of the current year, Dakota Mining Co. pays $5,719,680 for land estimated to contain 7,944,000 tons of recoverable ore. It installs machinery costing$714,960 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 beforemining operations begin. The company removes and sells 407,000 tons of ore during its first five months of operations ending on December 31. Depreciation...

  • On April 2, 2017, Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons....

    On April 2, 2017, Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 166,200 tons of ore during the remaining eight months of 2017. Prepare the December 31, 2017, entries to record both the ore deposit depletion...

  • On April 2, 2017, Montana Mining Co, pays $3,708,390 for an ore deposit containing 1.558,000 tons....

    On April 2, 2017, Montana Mining Co, pays $3,708,390 for an ore deposit containing 1.558,000 tons. The company installs machinery in the mine costing $212,300, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 172,600 tons of ore during the remaining eight months of 2017 Prepare the December 31, 2017, entries to record both the ore deposit depletion...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT