Record the first five months depreciation on the machinery

Assignment Help Accounting Basics
Reference no: EM133128132

Question - On July 23 of the current year, Dakota Mining Company pays $7,161,840 for land estimated to contain 8,232,000 tons of recoverable ore. It installs and pays for machinery costing $1,070,160 on July 25. The company removes and sells 421,750 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.

Required -

A. Record the cost of the ore mine of $7,161,840 Cash.

B. Record the cost of the ore mine of $1,070,160 Cash.

C. Record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.

D. Record the year-end adjusting entry for the depletion expense of ore mine.

E. Record the first five months' depreciation on the machinery.

F. Record the year-end adjusting entry for the depreciation expense of the machinery.

Reference no: EM133128132

Questions Cloud

Discuss the laws and the legal background : Discuss the laws and the legal background, areas, implication, and consequences related to the security issues that have been found in domus system
Statistics canada cansim database : Obtain data on annual inflation (annual CPI), using the Statistics Canada CANSIM database (Excel File must be submitted).
Why is he laughing that second time : 1. Aylmer's assistant, Aminadab, laughs twice at the end of the story. The first time he laughs, he seems to be laughing with triumph that Georgiana's birthmark
What is the total profit when profit maximized : A popcorn vendor, Popcorn for the W Inc, is selling popcorn at $6 a bag at a baseball game. Assume that Popcorn for the W Inc is in a perfectly competitive mark
Record the first five months depreciation on the machinery : Dakota Mining Company pays $7,161,840 for land estimated to contain 8,232,000 tons of recoverable ore. Record the first five month depreciation on the machinery
Calculate maximum profits : Your company recently developed a patent for a new drug. This is the first drug in the market to ever treat disease X. Your analysts have estimated your demand
Operate or shut down in the short-run : A firm is deciding whether to operate or shut down in the short-run. They have provided you with the following information:
Find the capital value of a fort : Find the capital value of a fort at a strategic location, where the annual rent is $850,000, paid in perpetuity, and the interest rate is 4% compounded continuo
How will this affect the shape of the efficiency locus : Suppose the production function for commodities X and Y are identical.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd