Question 14 Not yet answered On January 1, 2019, Oiltacular Inc. installed an oil well at a purchase price of $10,525,260 with an installation cost of $575,000 all for cash. The residual value of the oil well is $690,000. Oiltacular estimates that the total predicted output is 122,000 barrels of oil. The company only pumped out 4,900 barrels in 2019 and 4,700 barrels in 2020. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Marken out of 12.00 P Flag question a) Prepare the journal entry to record the purchase of the oil well with the installation, Date Account Title and Explanation Debit Credit Jan 1 b) Prepar the depletion for 2019 and 2020. Assume all oil pumped for 2019 was sold and none of the oil pumped in 2020 was sold. Accounts Payable Accounts Receivable Accumulated Depletion Cash Depletion Expense Oil Inventory Oil Well Prepaid Rent Rent Expense Salaries Expense Sales Revenue Supplies Expense on Debit Credit Date Dec 31 2019 Dec 31 2020 Depletion for 2020 Previous page Next page Question 14 Not yet answered On January 1, 2019, Oiltacular Inc. installed an oil well at a purchase price of $10,525,260 with an installation cost of $575,000 all for cash. The residual value of the oil well is $690,000. Oiltacular estimates that the total predicted output is 122,000 barrels of oil. The company only pumped out 4,900 barrels in 2019 and 4,700 barrels in 2020. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Marker out of 12.00 P Flag question a) Prepare the journal entry to record the purchase of the oil well with the installation, Date Account Title and Explanation Debit Credit Jan 1 Purchase of oil well b) Prepare the journal entries to record the depletion for 2019 and 2020. Assume all oil pumped for 2019 was sold and none of the oil pumped in 2020 was sold. Account Title and Explanation Debit Credit Date Dec 31 2019 Depletion for 2019 Dec 31 2020 Depletion for 2020 Previous page Next page