Assume the well on Lease A is successful, and additional IDC of $10,000 and additional equipment costs of $70,000 are incurred to complete the well. Entry Wells-in-progress-L&WE Wells-in-progress-IDC. Cash.. Entry to record completion of work on well Wells and equipment-L&WE Wells and equipment-IDC. Wells-in-progress-L&WE Wells-in-progress-IDC. Entry to reclassify lease as proved Proved property Unproved property Unproved Property 25,500 1,500 3,000 70,000 10,000 80,000 120,000 210,000 120,000 210,000 30,320 30,320 320 30.320 The separation of property into proved and unproved and the separation of drilling costs into completed and uncompleted is not required under full cost accounting theory. However, this distinction is useful for management needs, income tax accounting, etc. Assume the well on Lease B is determined to be dry and is plugged and abandoned for an additional $3,000. Entry to record additional costs Wells-in-progress-IDC. Cash Entry to record completion of work on well Exploratory dry holes-L&WE.. Exploratory dry holes-IDC Wells-in-progress L&WE Wells-in-progress-IDC. 3,000 3,000 20,000 133,000 20,000 133,000