A company pays $767,600 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $60,600 cash to access the mine, which is estimated to hold 101,000 tons of iron. The estimated value of the land after the iron is removed is $20,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Prepare the January 1 entry to record the cost of the iron mine.

2. Prepare the December 31 year-end adjusting entry if 20,300 tons of iron are mined but only 18,200 tons are sold this first year.