Western Mining Inc. acquires a zinc mine in January at a cost of $960,000 with an estimated 288,000 tons of zinc. Western Mining Inc. also incurs costs of $108,000 to develop the area around the site necessary to access the mine. The land is estimated to have a value of $60,000 after the zinc is mined. At the end of the year, 43,200 tons of zinc were mined and 38,880 tons were sold by December 31. a. Record the entry for acquisition of the zinc mine.

	Account Name	Debit	Credit
Jan. 1	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
	To record acquisition of mine.

b. Record the entries for depletion and for the cost of the sale of zinc during the year.

	Account Name	Debit	Credit
Dec. 31	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/ANo list available
	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/ANo list available
	To record depletion
Dec. 31	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/ANo list available
	CashInventoryZincZinc Mine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/ANo list available
	To record cost of sales