A company pays $851,200 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $67,200 cash to access the mine, which is estimated to hold 112,000 tons of iron. The estimated value of the land after the iron is removed is $22,400. (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 23,600 tons of iron are mined but only 20,400 tons are sold this first year.