{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T06:58:16-04:00", "answer_date": "2024-05-29 06:58:16", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1881111", "url": "\/study-help\/questions\/futurepetro-holdings-owned-the-following-unproved-property-as-of-the-1881111", "question_creation_date_js": "2024-05-29T06:58:16-04:00", "question_creation_date": "May 29, 2024 06:58 AM", "meta_title": "[Solved] FuturePetro Holdings owned the following | SolutionInn", "meta_description": "Answer of - FuturePetro Holdings owned the following unproved property as of the end of 1990. Significant Leases Insignificant Lea | SolutionInn", "meta_keywords": "futurepetro,holdings,owned,unproved,property,end,1990,significant,leases,insignificant,lease,s", "question_title_h1": "FuturePetro Holdings owned the following unproved property as of the end of 1990. Significant Leases Insignificant Leases Lease S $500,000 Lease T $70,000 Lease U", "question_title": "FuturePetro Holdings owned the following unproved property as of the end of", "question_title_for_js_snippet": "FuturePetro Holdings owned the following unproved property as of the end of 1990 Significant Leases Insignificant Leases Lease S $500,000 Lease T $70,000 Lease U $350,000 Lease V $50,000 Total $850,000 Lease W $40,000 Lease X $30,000 Total $190,000 Although no activity took place on Lease S during the year, FuturePetro decided that Lease S was not impaired because there were still four years left in that leases primary term Two dry holes were drilled on Lease U during the year but because FuturePetro intended to drill one more well on Lease U in the coming year, it decided that Lease U was only 50 impaired With respect to the insignificant leases, past experience indicates that 68 of all unproved properties assessed on a group basis will eventually be abandoned FuturePetros policy is to provide at year end an allowance equal to 65 of the gross cost of these properties The allowance account had a balance of $25,000 at year end Give the entries to record impairment, prepare the general ledger, and calculate the earnings per share ", "question_description": "

FuturePetro Holdings owned the following unproved property as of the end of 1990.<\/p>

Significant Leases<\/strong><\/p><\/td>


<\/td>

Insignificant Leases<\/strong><\/p><\/td>


<\/td><\/tr><\/thead>

Lease S<\/p><\/td>

$500,000<\/p><\/td>

Lease T<\/p><\/td>

$70,000<\/p><\/td><\/tr>

Lease U<\/p><\/td>

$350,000<\/p><\/td>

Lease V<\/p><\/td>

$50,000<\/p><\/td><\/tr>

Total<\/p><\/td>

$850,000<\/p><\/td>

Lease W<\/p><\/td>

$40,000<\/p><\/td><\/tr>


<\/td>
<\/td>

Lease X<\/p><\/td>

$30,000<\/p><\/td><\/tr>


<\/td>
<\/td>

Total<\/p><\/td>

$190,000<\/p><\/td><\/tr><\/tbody><\/table>

Although no activity took place on Lease S during the year, FuturePetro decided that Lease S was not impaired because there were still four years left in that lease\u2019s primary term. Two dry holes were drilled on Lease U during the year; but because FuturePetro intended to drill one more well on Lease U in the coming year, it decided that Lease U was only 50% impaired. With respect to the insignificant leases, past experience indicates that 68% of all unproved properties assessed on a group basis will eventually be abandoned. FuturePetro\u2019s policy is to provide at year-end an allowance equal to 65% of the gross cost of these properties. The allowance account had a balance of $25,000 at year end. Give the entries to record impairment, prepare the general ledger, and calculate the earnings per share.<\/p>", "transcribed_text": "", "related_book": { "title": "Fundamentals Of Oil And Gas Accounting", "isbn": "9781593703639", "edition": "6th Edition", "authors": "Charlotte Wright", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/62fca51cbc033_11500.jpg", "uri": "\/textbooks\/fundamentals-of-oil-and-gas-accounting-6th-edition-9781593703639", "see_more_uri": "\/textbooks\/business-business-communication-20" }, "free_related_book": { "isbn": "B00E3FDN6Q", "uri": "\/textbooks\/the-2013-report-on-accounting-auditing-and-bookkeeping-services-world-market-segmentation-by-city-1st-edition-b00e3fdn6q-253273", "name": "The 2013 Report On Accounting Auditing And Bookkeeping Services World Market Segmentation By City", "edition": "1st Edition" }, "question_posted": "2024-05-29 06:58:16", "see_more_questions_link": "\/study-help\/questions\/business-organizational-behavior-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/given-the-project-network-that-follows-compute-the-early-late", "description": "Given the project network that follows, compute the early, late, and slack times for the project. 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