User Account

All Pages

The purchase of the land

Assignment Help Accounting Basics
Reference no: EM13902190

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 machinery costing $410,000 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 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 mines depletion as the machinery will be abandoned after the ore is mined.

Required: Prepare entries to record
(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.Analysis Component Describe both the similarities and differences in amortization, depletion, and depreciation.

Reference no: EM13902190

Questions Cloud

Geological cross section showing relations : If gabbro cuts across both sandstone and schist and schist is the oldest, draw a geological cross section showing relations between the rocks.
Calculating the weighted average of the cost of equity : We find the cost of capital by calculating the weighted average of the cost of equity, debt, and preferred stock.  Different sources of funds have different costs. Debt is almost always cheaper than equity, but using debt increases risk in terms of d..
Business process of the selected project : Select one (1) project from your working or educational environment that you would use the hypothesis test technique. Next, propose the hypothesis structure (e.g., the null hypothesis, data collection process, confidence interval, test statistics,..
Describe the procedures prescribed by us gaap and ifrs : Describe the procedures prescribed by U.S. GAAP and IFRS to test for goodwill impairment. How do these procedures differ from the procedure followed for testing the impairment of a patent?
The purchase of the land : 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.
Causes and effects of sand deposition : What are some nautural causes and effects of sand deposition? What are some geological features that can develop from sand deposition over time?
How would you explain your conclusion to sara : How many friend samples Sara should have in order to draw the conclusion with 95% confidence interval? Why?How would you explain your conclusion to Sara without using any statistical jargon? Why
The interest rate expressed : The interest rate expressed as if it were compounded once per year
Age of the zircon crystallization : Analysis of zircon crystals separated from the sandstone showed that the 206Pb/238U ratio was is 0.90, How do you work out an estimate for the age of the zircon crystallization assuming that the decay of 238U to 206Pb is 4.47x10^9 Years?

Reviews

Write a Review

Accounting Basics Questions & Answers

  The lease line leasing transactions represent a very

the lease line leasing transactions represent a very significant portion of the capital investments of many companies.

  Differentiate across various forms of business combinations

Define the term business combination and differentiate across various forms of business combinations. Describe when consolidation of financial information into a single set of statements is necessary.

  The auto repair shop uses standards to control labor time

the auto repair shop uses standards to control labor time and labor cost in the shop. the standard time for a motor

  Write a summary of a current event article

Write a summary of a current event article relating to cost behavior and/or cost-volume-profit analysis. Please cite your source. The article can be from television, newspaper, or a current magazine. Please give some thought to the assignment and ..

  If thomson company did not issue any bonds payable during

if thomson company did not issue any bonds payable during the year and its bonds payable account decreased by 200000

  Income statement are listed below in alphabetical order

Entries of the Warren Clinic 2012 income statement are listed below in alphabetical order. Reorder the data in the proper format.

  Explain the difference between revenue expenditures and

what is the difference between revenue expenditures and capital expenditures during a useful life? are there

  Montevallo Corporation leased equipment from Folio Company

Montevallo Corporation leased equipment from Folio Company. The lease term is 10 years, requires payments of $25,000 at the end of each year, and contains a bargain purchase option. At the end of the lease Montevallo has an option to pay $4,000 (whic..

  During 2011 towson recording company increased its

during 2011 towson recording company increased its investment in marketable securities by 40726 funded fixed-assets

  Wires inc sells telephone poles to utility and telephone

wires inc. sells telephone poles to utility and telephone companies across the united states. there are four regions

  Crowe company has acquired a building with a loan that

crowe company has acquired a building with a loan that requires payments of 20000 every six months for 5 years. the

  Assume that you are about to graduate from your university

assume that you are about to graduate from your university and are deciding whether to apply for graduate school or

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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