Philco Company owns a proved property with the following costs: Philco Company sells 100% of the working

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Philco Company owns a proved property with the following costs: image text in transcribed

Philco Company sells 100% of the working interest in the property to Company Q for $600,000.

a. Give the entry for Philco Company to record the sale assuming that Philco uses the successful efforts method.

b. Give the entry for Philco Company to record the sale if the property had sold for $400,000.

c. Give the entry for part a and part

b, assuming Philco Company is a full cost company, and the reserves sold constitute 15% of Philco’s share of reserves in the cost center.

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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 10:16 AM

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Philco Company owns a proved property with the following costs: Philco Company sells 100% of the working

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Leasehold IDC ... Equipment.. Total accumulated DD&A. (separate amortization base) $ 80,000 500,000 120,000 250,000

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Fundamentals Of Oil And Gas Accounting

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