answer a and b

Ch05-Q04 a)- Depreciation on the automobile used by the drilling foreman totaled 50,000 during the year. The automobile was used to support the drilling of several wells, the depreciation must be allocated between the all of the wells being drilled during the period. Using a mileage driven basis 12,000 of the depreciation is allocated to Well No. 1. b)- The Company had hired a drilling contractor on a footage-rate contract and, as is usual in such an agreement, payment was contingent upon the contractor drilling to a specified depth. The well was spudded (i.e., drilling was begun) early in June and contract depth was reached in late July. Lucky Company paid the contractor 250,000 Record the necessary journal entries