Oil & gas accounting

Question 9 (13 points) Bahrain Oil Corporation had the following information and account balances for the years shown relating to Lease (A), 12/31/2020: Net capitalized cost or book value of wells and equipment, DC-L&WE....$135,000 Estimated proved reserves, 12/31/2020 Oil........12,500 bbl Gas... 150,000 Mcf Estimated proved undeveloped reserves. 12/31/2020 Oil...... 3,000 bbl Gas...30,000 Mef Production during 2020 Oil 1,750 bbl Gas........17,500 Mcf Required: 1-a Compute DD&A for the year ended 12/31/2020 using a common unit of measure based on equivalent Mcf 1-b. Gas as the dominant mineral 2-Prepare the journal entry to record the DD&A in either 1-a or 1-b Answer: Req. 1-a (8 points) Compute DD&A using a common unit of measure based on equivalent Mcf: (rounded up to the nearest amount)