Required information (The following information applies to the questions displayed below On July 23 of the current year, Dakota Mining Company pays $6.434.640 for land estimated to contain 7,944,000 tons of recoverable ore, It installs and pays for machinery costing $1.271,040 on July 25. The company removes and sells 408,500 tons of ore during its first five months of operations ending on December 31. Cepreciation of the machinery is in proportion to the mine's depletion os the machinery will be abandoned after the ore is mined. uired: pare entries to record the folowing The purchase of the land, The cost and instolation of machinery The first five months depletion assuming the lond has a net salvage value of zeto after the ore is mined. The first five months depreciation on the machiriery Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 repare the journal entry to record the purchase of the land. View transaeton list
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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![Required Information
(The following information apphes to the questions displayed below]
On July 23 of the current year, Dakota Mining Company pays $6,434.640 for land estimated to contain7,944,000 tons of
recoverable ore, It installs and pays for machinery costing $1.271,040 on July 25 The company removes and sells
408,500 tons of ore during its first five months of operations ending on December 31. Cepreciation of the machinery is in
proportion to the mine's depletion as the machinery will be abandoned after the ore s mined.
Required:
Prepare entries to record the folowing
(a) The purchase of the land.
(b) The cost and installation of machinery.
(c) The first five months' depletion assuming the lond has a net salvage value of zero after the ore is mined.
(d) The first five months depreciation on the machiniery
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.
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