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On July 1 of the current year, a company pays $7,625,520 cash for an ore...

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Accounting

On July 1 of the current year, a company pays $7,625,520 cash for an ore mine estimated to contain 8,568,000 tons of ore. It installs and pays for machinery costing $1,028,160 cash on July 2. The company removes and sells 439,250 tons of ore during its first six 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.
Prepare entries to record.
a. purchase of the ore mine
b. the cost and installation of machinery
c. the first six month' depletion assuming the ore mine has a net salvage value of zero after the ore is mined
d. the first six month' depreciation on the machinery.
Complete this question by entering your answers in the tabs below.
Required D2
Prepare the journal entry to record purchase of the ore mine.
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