Answer:
1. Journal Entry - See explanation section
2. Adjusting Entry - See explanation section
Explanation:
Before we provide journal entries, we have to calculate the depletion expense according to the questions format.
Cost (Purchase price + additional cost) $1,800,000
Salvage value $ 200,000
Amount subject to depletion $1,600,000
Total units of capacity 1,000,000
Depletion per unit $1.60
Units extracted and sold in period 180,000
Depletion expense $288,000
Therefore, the journal entry to record the cost of the ore mine.
Debit Ore mine $1,800,000
Credit Cash $ 1,800,000
Since, the cost of acquisition of a mine ore will be the combination of the cost of an ore mind, both have been added to determine the total cost.
Adjusted entry will be-
Depreciation expense Debit 288,000
Accumulated depreciation Debit 288,000
