Critic Oil Company purchased three leases as follows:

All the leases are classified as individually significant.

a. On December 31, 2014, Lease A is determined to be 25% impaired. Lease B and Lease C are not impaired.

b. On December 31, 2015, Lease A is determined to be impaired a total of 75%, and Lease C, 60%. Lease B is not impaired.

c. On December 31, 2016, Lease A is considered to be 100% impaired and is abandoned. Lease B is 30% impaired, and a well on Lease C found proved reserves.
Prepare journal entries for all of the transactions except the initial purchase.

Transcribed Image Text:

July 1, 2014 Lease A $100,000 August 15, 2014 Lease B 200,000 October 10, 2014 Lease C 300,000