Dino Oil Company entered into two test well contribution agreements as follows: On May 17, 2004, a
Fantastic news! We've Found the answer you've been seeking!
Question:
Dino Oil Company entered into two test well contribution agreements as follows:
- On May 17, 2004, a bottom-hole agreement was obtained requiring a payment of $45,000 when the contract depth of 10,000 feet was reached. The contract depth was reached on September 21, 2004 and the required payment was made.
- On September 30, 2004, a dry hole test-well contribution was entered into requiring payment of $50,000 if the well was dry, but no payment if the well was successful. The well was successful.
I need necessary entries for the above transactions
Posted Date: