Rivers Mining Company has a December 31 fiscal year end. The following information relates to its Golden Grove mine: 1. years. Rivers purchased the Golden Grove mine on March 31, 2020, for $2.6 million cash. On the same day, modernization of the mine was completed at a cash cost of $260,000. It is estimated that this mine will yield 560,000 tonnes of ore. The mine's estimated residual value is $200,000. Rivers expects it will extract all the ore, and then close and sell the mine site in four During 2020, Rivers extracted and sold 120,000 tonnes of ore from the mine. At the beginning of 2021, Rivers reassessed its estimate of the remaining ore in the mine. Rivers estimates that there are still 550,000 tonnes of ore in the mine at January 1, 2021. The estimated residual value remains at $200,000, During 2021, Rivers extracted and sold 100,000 tonnes of ore from the mine. 2. 3. 4. Rivers Mining Company has a December 31 fiscal year end. The following information relates to its Golden Grove mine: 1. Rivers purchased the Golden Grove mine on March 31, 2020, for $2.6 million cash. On the same day, modernization of the mine was completed at a cash cost of $260,000. It is estimated that this mine will yield 560,000 tonnes of ore. The mine's estimated residual value is $200,000. Rivers expects it will extract all the ore, and then close and sell the mine site in four years. 2. 3. During 2020, Rivers extracted and sold 120,000 tonnes of ore from the mine. At the beginning of 2021, Rivers reassessed its estimate of the remaining ore in the mine. Rivers estimates that there are still 550,000 tonnes of ore in the mine at January 1, 2021. The estimated residual value remains at $200,000 During 2021, Rivers extracted and sold 100,000 tonnes of ore from the mine. 4. Prepare the 2020 and 2021 journal entries for the above, including any year-end adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round per tonne value to 2 decimal places, eg, 1225 & final answers to decimal places, eg. 5.275.) 2020 Credit Show how the Golden Grove mine will be reported on Rivers's December 31, 2021, income statement. RIVERS MINING COMPANY Income Statement (Partial) $ List of Accounts Show how the Golden Grove mine will be reported on Rivers's December 31, 2021, balance sheet. RIVERS MINING COMPANY Balance Sheet (Partial) $ List of Accounts
