Wildcat Oil Company obtained a lease on March 1, 2005. Being short of funds, Wildcat Oil Company
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Wildcat Oil Company obtained a lease on March 1, 2005. Being short of funds, Wildcat Oil Company did not begin drilling operations during the first year of the primary term and on March 1, 2006, made a delay rental payment of \($8,000.\) On May 12, 2006, the company paid a bottom-hole contribution of \($30,000.\) The information obtained from this well was so encouraging that Wildcat Oil Company decided to begin drilling operations; however, there were some title problems and drilling was delayed. Legal costs incurred for title defense were \($50,000.\) Give the entries.
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Fundamentals Of Oil And Gas Accounting
ISBN: 9780878147939
4th Edition
Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson
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