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Ghada Energy, uses successful cost approach, decided to explore some acreage in Eastern side of KSA before acquiring any leases. Ghada Energy obtained shooting rights
Ghada Energy, uses successful cost approach, decided to explore some acreage in Eastern side of KSA before acquiring any leases. Ghada Energy obtained shooting rights coupled with an option to lease on 10,000 acres owned by Yosr for $3 per acres. Ghada Energy also obtained shooting rights only on 5,000 acres owned by Rennad for $2/acre. The entry to record both transactions include: A. A debit Property purchase suspense of $10,000 OB. A debit G&G expenses of $10,000 C. A credit cash of $30,000 D. A credit cash of $20,000
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