Oil Company has an account titled Oil and Gas Properties. Chapman

Chapman paid

$6,600,000 for oil reserves holding an estimated

400,000 barrels of oil. Assume the company paid

$540,000 for additional geological tests of the property and

$480,000 to prepare for drilling. During the first?year, Chapman

Chapman removed and sold 8

85,000 barrels of oil. Record all of Chapman

Chapman?'s ?transactions, including depletion for the first year. ?(Record debits?first, then credits. Explanations will appear on the last line of the journal entry?table.)

Chapman

Chapman paid $

$6,600,000 for oil reserves holding an estimated

400,000 barrels of oil.

Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves?(geological testing?and/or drilling). We will do this in the following entry.

Oil Company has an account titled Oil and Gas Properties. Chapman Chapman paid $6,600,000 for oil reserves holding an estimated 400,000 barrels of oil. Assume the company paid $540,000 for additional geological tests of the property and $480,000 to prepare for drilling. During the first year, Chapman Chapman removed and sold 8 85,000 barrels of oil. Record all of Chapman Chapman's transactions, including depletion for the first year. (Record debits first, then credits. Explanations will appear on the last line of the journal entry table.) Chapman Chapman paid $6,600,000 for oil reserves holding an estimated 400,000 barrels of oil. Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves (geological testing and/or drilling). We will do this in the following entry. . Date Accounts and Explanation Debit Credit Assume the company paid $ 540 comma 000$540,000 for additional geological tests of the property and $ 480 comma 000$480,000 to prepare for drilling. Record the payment for additional geological tests of the property and for preparing the property for drilling. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit During the first year, ChapmanChapman removed and sold 85 comma 00085,000 barrels of oil. Record the depletion expense for the first year. (Assume no residual value. Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) Date Accounts and Explanation Debit Credit