Prepare entries to record the following do not round your

Reference no: EM13598607

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 before mining operations begin. The company removes and sells 407,000 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.

Required:
Prepare entries to record the following (Do not round your intermediate calculations. Round your answer to the nearest dollar amount. Omit the "$" sign in your response):

(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.

Reference no: EM13598607

Questions Cloud

A guide to outsourcing overseas february 11th 2011 in these : read the below article and answer the following questions...a what are the positives of overseas outsourcing?b what are

Gregorys purchased a 25000 truck for catering from its : gregorys purchased a 25000 truck for catering from its restaurant. it made a down payment of one-fourth of the price.

A disgruntled employee is suing madison company legal : 1. during december madison company sold 4100 units of a product that carries a 60-day warranty. december sales for this

A company is considering the purchase of a new machine for : a company is considering the purchase of a new machine for 128000. management predicts that the machine can produce

Prepare entries to record the following do not round your : on july 23 of the current year dakota mining co. pays 5719680 for land estimated to contain 7944000 tons of recoverable

Ellen converted her personal residence to rental property : ellen converted her personal residence to rental property. her basis in the entire property was 45000 and 5000 of this

Dennis a self-employed businessman flew to asia on : dennis a self-employed businessman flew to asia on september 15. the primary purpose of the trip was business. dennis

A company bought a machine that has an expected life of 7 : a company bought a machine that has an expected life of 7 years and no salvage value. management estimates that this

Andrew paid his personal property tax on his car in : andrew paid his personal property tax on his car in december of the current year. he wrote the check for 199.50. the

User Account

All Pages