Question
Q3 The following costs for Davison Lease were all incurred during 2020. Acquisition Costs................................................................................................. $30,000 G&G Costs.......................................................................................................... $80,000 Exploratory dry holes........................................................................................ $1,500,000 Successful exploratory holes.............................................................................
Q3 The following costs for Davison Lease were all incurred during 2020. Acquisition Costs................................................................................................. $30,000 G&G Costs.......................................................................................................... $80,000 Exploratory dry holes........................................................................................ $1,500,000 Successful exploratory holes............................................................................. $350,000 Development wells, dry.................................................................................... $200,000 Development wells, successful......................................................................... $475,000 Cost of production facilities.............................................................................. $250,000 Production costs................................................................................................ $60,000 DD&A*.............................................................................................................. $55,000 Accumulated DD&A........................................................................................ $150,000 Revenue from sale of oil................................................................................... $225,000 * Depreciation, depletion, and amortization REQUIRED: Prepare the 2020 income statements and unclassified partial balance sheets for a successful efforts (SE) company.
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