I have solved the following question but don't know the correct answer for entry 2.

Diamond Company acquires an ore mine at a cost of $1,300,000. It incurs additional costs of $200,000 to access the mine, which is estimated to hold 500,000 tons of ore. The estimated value of the land after the ore is removed is $150,000.

1. Prepare the entry(ies) to record the cost of the ore mine.
2. Prepare the year-end adjusting entry if 90,000 tons of ore are mined and sold the first year.

My answer:

For entry 1, I debited ore mine for $1,500,000 and credited cash for $1,500,000.

For entry 2, I have 2 seperate possible answers and am unsure which is correct.

Possible solution 1 for entry 2 is debit depletion expense $243,000 and credit ore mine $243,000

Possible solution 2 for entry 2 is debit depletion expense, debit ore inventory and credit accumulated depletion (I am unsure of exact numbers on this one too)