Question

Chapter 08 Homework i Saved 12 On April 2. 2018, Montana Mining Co. pays $4,788,910 for an ore deposit containing 1,469,000 tons. The company installs machinery in the mine costing $218,700, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2018, and mines and sells 141,700 tons of ore during the remaining eight months of 2018. points Prepare the December 31, 2018, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) eBook View transaction list Hint Journal entry worksheet Print < 1 2 References Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal

Answer 1

Dec 31	Depletion expense - ore mine	461,939
	Accumulated depletion - ore mine		461,939
	(4,788,910/1,469,000)*141,700
Dec 31	Depreciation expense - mining machinery	21,096
	Accumulated Depreciation - mining mac		21,096
	(218,700/1,469,000)*141,700

I have rounded some numbers. Comment if you face any issues