During the calendar year 2015, Deep Corporation had the following transactions on an unproved property: Grant #1

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During the calendar year 2015, Deep Corporation had the following transactions on an unproved property:

Grant #1 was drilled, with IDC costs of $310,000 and equipment costs of $42,000.

The well was determined to be dry and was plugged and abandoned at a cost of

$10,000. Salvaged equipment placed in inventory was valued at $8,000.

Prepare journal entries for the transactions.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593701376

5th Edition

Authors: Charlotte J. Wright, Rebecca A. Gallun

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