Natural Resources The Hollister Company acquires a silver mine at the cost of $1,900,000 on January 1. Along with the purchase price Hollister pays additional costs associated with development of $50,000. Hollister expects the mine will have a salvage value of $250,000 once all the silver has been mined. Best estimates are that the mine contains 250,000 tons of are. Required a. Prepare the entry to record the purchase of the silver mine. b. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined and all the ore is sold. c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of ore are mined but only 15,000 tons of the ore are sold. Description Debit Credit Purchase of silver mine . 0 0 To record depletion on silver mine Siver inventory 0 9 # 0 B 0 To record depletion on silver mine c. Prepare the December 31 year-end adjusting entry to record depletion is 60,000 tons of c Description Debit Credit a. 0 0 0 0 Purchase of silver mine b. 0 0 0 0. To record depletion on silver mine. c. Silver inventory Accumulated depletion - Silver mine Cash 0 0 0 0 0 0 P Depletion expense - Silver mine Silver inventory Silver mine Previous Save Answers