Entries Unproved property-Lease A (1,000 x $25 +$500)... Cash Unproved property-Lease B (1,500 x $20+$1,000)... Cash Chapter 7 Full Cost Accounting 231 25,500 25,500 31,000 31,000 Note that although the cost center under full cost is a country and detailed records are not required, Tyler's accounting records are kept on a lease basis. When DD&A is computed, all lease costs are aggregated for the specific cost center. & During the following year, Tyler Company incurred and paid the following items: 1) Ad valorem taxes of $1,500 on Lease A Entry Unproved property-ad valorem taxes-Lease A... Cash 1,500 1,500 Note that these ad valorem taxes and many of the costs below are nondrilling costs that can be associated with an unproved property when incurred. Therefore, they are debited to an unproved property control account. 2) Dry-hole contribution of $10,000 on Lease B Entry Unproved property-test well contribution-Lease B Cash 10,000 10,000 3) Delay rentals on Leases A and B of $3,000 and $4,000, respectively Entries Unproved property-delay rental-Lease A. Cash Usproved property delay rental-Lease B.. Cash 3,000 3,000 4,000 4,000 4) Nonrecoverable delinquent taxes on Lease B, $2,000 (not specified in lease contract)