Question
Mars Petroleum owned the following unproved property at 12/31/93: Significant Leases Cost Impairment Insignificant Leases Cost Total Impairment Lease A $340,000 $140,000 Lease C $45,000
Mars Petroleum owned the following unproved property at 12/31/93:
Significant Leases | Cost | Impairment | Insignificant Leases | Cost | Total Impairment |
Lease A | $340,000 | $140,000 | Lease C | $45,000 | |
Lease B | $490,000 | $150,000 | Lease D | $32,000 | |
Lease E | $25,000 | ||||
Lease F | $20,000 | ||||
$122,000 | $48,000 |
Prepare journal entries for 2094, assuming the following events:
a. Lease A was sold for $350,000.
b. Lease B was abandoned.
c. Proved reserves were found on Lease D and Lease F.
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry Wolk, James Dodd, John Rozycki
8th edition
1412991692, 978-1412991698
