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11. Formation Oil Company began in 2005 with the acquisition of four individually significant unproved leases. Give the entries, assuming the following transactions. You may

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11. Formation Oil Company began in 2005 with the acquisition of four individually significant unproved leases. Give the entries, assuming the following transactions. You may combine entries for items marked with an asterisk (). 10. Hard Luck Oil Company incurred the following costs during 2008: a. began drilling an exploratory-type stratigraphic test well, incurred $50,000 of IDC b. began drilling an exploratory-type stratigraphic test well, incurred $80,000 of IDC and $10,000 in equipment costs c. began drilling a development-type stratigraphic test well, incurred $100,000 of IDC d. began drilling a development-type stratigraphic test well, incurred $200,000 of IDC and $30,000 in equipment costs a. The following results were obtained late in 2008 a. well was determined to be dry b. well found proved reserves c. well found proved reserves d. well was determined to be dry Prepare the necessary entries. 11. Formation Oil Company began in 2005 with the acquisition of four individually significant unproved leases. Give the entries, assuming the following transactions. You may combine entries for items marked with an asterisk (). 10. Hard Luck Oil Company incurred the following costs during 2008: a. began drilling an exploratory-type stratigraphic test well, incurred $50,000 of IDC b. began drilling an exploratory-type stratigraphic test well, incurred $80,000 of IDC and $10,000 in equipment costs c. began drilling a development-type stratigraphic test well, incurred $100,000 of IDC d. began drilling a development-type stratigraphic test well, incurred $200,000 of IDC and $30,000 in equipment costs a. The following results were obtained late in 2008 a. well was determined to be dry b. well found proved reserves c. well found proved reserves d. well was determined to be dry Prepare the necessary entries

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