$12$

Exercise $8-19($Algo$)$ Depletion of natural resources LO P$3$

$7\mathrm{.}69$

points

$02$:$10$:$23$

Montana Mining Company pays $$4,315,450$ for an ore deposit containing $1,493,000$ tons. The company installs machinery in the mine costing $$221,500.$ Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells $168,000$ tons of ore during the year.

Prepare the December $31$ year$-$end 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.

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Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.

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$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[i,1,$December $31,$Depletion expense$-$Mineral deposit,$510,720,],[,,$Accumulated depletion$-$Mineral deposit,,$510,720],[,,,,],[i,2,$December $31,$Depreciation expense$-$Machinery,$510,720,],[,,$Accumulated depreciation$-$Machinery,,$510,720]]$