Ernest Oil Companys balance sheet, at 12/31/14, included account balances as follows: During 2015, the following events

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Ernest Oil Company’s balance sheet, at 12/31/14, included account balances as follows: image text in transcribed

During 2015, the following events related to the above unproved properties occurred:

a. Lease A is abandoned.

b. Lease B is surrendered.

c. Leases G & F (individually insignificant) in the amounts of $$2,000$ and $$3,000$, respectively, are abandoned.
Prepare the necessary entries.

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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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Question Posted: May 31, 2024 10:15 AM

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Ernest Oil Companys balance sheet, at 12/31/14, included account balances as follows: During 2015, the following events

Question:

Cost Allowance for Impairment Lease A $40,000 $ 10,000 Lease B.. 80,000 24,000 Lease C.. 100,000 0 Individually insignificant (Leases D-J).. 200,000 120,000

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Fundamentals Of Oil And Gas Accounting

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