Lexington Company sold 50% of the working interest in a proved lease to Cantu Company for $500,000.

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Lexington Company sold 50% of the working interest in a proved lease to Cantu Company for $500,000. Lexington Company’s net cost basis in this proved property was $300,000. Lexington Company uses the successful efforts method.

REQUIRED: Give the entry for Lexington Company to record the sale.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:00 AM

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Lexington Company sold 50% of the working interest in a proved lease to Cantu Company for $500,000.

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Fundamentals Of Oil And Gas Accounting

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