Problem 10-7A (Algo) Natural resources LO P3 (The following information applies to the questions displayed below) On July 23 of the current year, Dakota Mining Company pays $6,929,280 for land estimated to contain 9,624,000 tons of recoverable ore. It instals and pays for machinery costing $577,440 on July 25. The company removes and sells 496,750 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. Problem 10-7A (Algo) Part 1-4 Required: 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.

Problem 10-7A (Algo) Natural resources LO P3 (The following information applies to the questions displayed below) On July 23 of the current year, Dakota Mining Company pays $6,929,280 for land estimated to contain 9,624,000 tons of recoverable ore. It instals and pays for machinery costing $577,440 on July 25. The company removes and sells 496,750 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. Problem 10-7A (Algo) Part 1-4 Required: 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.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 38BE

See similar textbooks

Similar questions

Required information [The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Co. pays $7.075.200 for land estimated to contaln 8,040,000 tons of recoverable ore. It Installs and pays for machinery costing $804,000 on July 25. The company removes and sells 412,750 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 depletlon as the machinery wll be abandoned after the ore is mined. (e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine? Depreciated
Required information Skip to question [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $8,247,600 for land estimated to contain 9,480,000 tons of recoverable ore. It installs and pays for machinery costing $1,706,400 on July 25. The company removes and sells 487, 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. (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.
Exercise 9.11 (Algo) Depletion of Natural Resources (LO9-7) Salter Mining Company purchased the Northern Tier Mine for $88 million cash. The mine was estimated to contain 1.45 million tons of ore and to have a residual value of $1.4 million. During the first year of mining operations at the Northern Tier Mine, 95,000 tons of ore were mined, of which 18,000 tons were sold. a. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year of operations.
! Required information [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $8,027,760 for land estimated to contain 9,672,000 tons of recoverable ore. It installs and pays for machinery costing $773,760 on July 25. The company removes and sells 499,500 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. (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…
rmn.3
3
M2
Give me correct answer with explanation .j
! Required information Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet 1 2 > Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry…
2. Mark Company
Domestic
Domestic