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2 2 ) The Cross - Oil Corporation incurred the following costs and had the following other transactions for the years 2 0 2 0
The CrossOil Corporation incurred the following costs and had the following other transactions for the years and The company uses the Successful efforts method of accounting. Prepare journal entries for the CrossOil Corporations transactions for and and prepare a BALANCE SHEET STATEMENT using the Successful Effortmethod of accounting for a Paid $ for G&G costs during the year b Leased acreage in three individually significant areas as follows Jones lease acres @$ per acre, and other acquisition costs of $ Batch lease acres @ a lease bonuses of $ per acre, and other acquisition costs of $ Highland lease acres @ $ per acre bonus, and other acquisition costs of $ c The company also leased individual tracts for a total cost of $ These leases are considered to be beindividually insignificant and are the first insignificant unproved properties acquired by Cross. d Paid $ in costs to maintain lease and land records in Also paid $ to successfully defend atitle suit concerning the Batch lease. e Paid the following costs in connection with Batch # a successful exploratory well: G&G costs to locate a well site $Location and road preparation prior to spuddingin the well $ Surface damages $ Surface casing $ Drilling contractor fee daywork rate $ Equipment rentals $ Drilling fluids $ Fuel $ Drill bits $ Cementing services $ Roustabout labor $ Hauling & transportation $ Production casing $ Tank battery $ Flow lines & connections $ Pumping unit motor & accessories $Casing head & connections $ Tubing $ Separating and treating equipment $Measuring equipment $ Downhole pump and rods $ Testing and acidizing $ f An exploratory well was drilled on the Highland lease in on a turnkey basis to feet. The contractors charge of $ was paid. The charge included $ for casing. At the end of a decision had not been made to complete or abandon the well. Both criteria for delaying classification of the well were met. At the end of the Jones lease was impaired and the Highland lease by Thecompanys policy is to maintain an allowance for impairment at of the cost of insignificant leases. g CrossOil Corporation recorded $ in Accumulated DD&A and recorded $ in total DD&A expenses for nformation for preparation of a formal Balance Sheet h Delay rentals of $ were paid on the Jones lease, $ on the Highland lease and $ oninsignificant leases. iDuring the Jones lease was abandoned, and three of the individually insignificant leases cost $were also abandoned. j At yearend the company decided to abandon the Highland well. It was determined to be a dry hole No Proved Reserves
The CrossOil Corporation incurred the following costs and had the following other transactions for the years and The company uses the Successful efforts method of accounting. Prepare journal entries for the CrossOil Corporations transactions for and and prepare a BALANCE SHEET STATEMENT using the Successful Effortmethod of accounting for
a Paid $ for G&G costs during the year
b Leased acreage in three individually significant areas as follows
Jones lease acres @$ per acre, and other acquisition costs of $
Batch lease acres @ a lease bonuses of $ per acre, and other acquisition costs of $
Highland lease acres @ $ per acre bonus, and other acquisition costs of $
c The company also leased individual tracts for a total cost of $
These leases are considered to be beindividually insignificant and are the first insignificant unproved properties acquired by Cross.
d Paid $ in costs to maintain lease and land records in Also paid $ to successfully defend atitle suit concerning the Batch lease.
e Paid the following costs in connection with Batch # a successful exploratory well:
G&G costs to locate a well site $Location and road preparation prior to spuddingin the well $
Surface damages $
Surface casing $
Drilling contractor fee daywork rate $
Equipment rentals $
Drilling fluids $
Fuel $
Drill bits $
Cementing services $
Roustabout labor $
Hauling & transportation $
Production casing $
Tank battery $
Flow lines & connections $
Pumping unit motor & accessories $Casing head & connections $
Tubing $
Separating and treating equipment $Measuring equipment $
Downhole pump and rods $
Testing and acidizing $
f An exploratory well was drilled on the Highland lease in on a turnkey basis to feet. The contractors charge of $ was paid. The charge included $ for casing. At the end of a decision had not been made to complete or abandon the well. Both criteria for delaying classification of the well were met. At the end of the Jones lease was impaired and the Highland lease by Thecompanys policy is to maintain an allowance for impairment at of the cost of insignificant leases.
g CrossOil Corporation recorded $ in Accumulated DD&A and recorded $ in total DD&A expenses for nformation for preparation of a formal Balance Sheet
h Delay rentals of $ were paid on the Jones lease, $ on the Highland lease and $ oninsignificant leases.
iDuring the Jones lease was abandoned, and three of the individually insignificant leases cost $were also abandoned.
j At yearend the company decided to abandon the Highland well. It was determined to be a dry hole No Proved Reserves
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