Exercise 8-20 (Algo) Depletion of natural resources LO P3 A company pays $874,000 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $69,000 cash to access the mine, which is estimated to hold 115,000 tons of iron. The estimated value of the land after the iron is removed is $23,000. (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 24,500 tons of iron are mined but only 21,000 tons are sold the first year. View transaction ist Journal entry worksheet 2 Prepare the January 1 entry to record the cost of the Iron mine. Note Enter debits before credits Date General Journal Debit Credit