This is under Successful Efforts

12. The following information as of 12/31/16 relates to the first year of operations for Complex Oil Company. From the data, (1) prepare entries, and (2) prepare an income statement for Complex Oil Company for 2016, assuming revenue to the company from oil sales is $1,200,000. Expense lifting costs as lease operating expense. dry Transactions, 2016 Lease A Lease B Lease C *a. Acquisition costs of undeveloped leases (1/8 RI) $ 60,000 $ 30,000 $ 20,000 *b. G&G costs 60,000 70,000 90,000 *c. Drilling costs 200,000 200,000 250,000 d. Drilling results: Drilling Drilling Drilling completed completed; not Proved reserves 700,000 bbl completed Proved developed reserves 300,000 bbl (as of 12/31) e. Production 10,000 bbl f. Lifting costs $ 50,000 g. December 31 Recorded Impaired DD&A lease 40% Transactions, 2017 h. Assume on January 2 of the second year (2017) that disaster struck both Lease A and Lease B. Give the entries to record abandonment of Lease A and Lease B. Assume equipment costing S15,000 was salvaged from Lease A. Assume this is not a post-balance sheet event that would give rise to changes in the balance sheets or income statements of previous years. 12. The following information as of 12/31/16 relates to the first year of operations for Complex Oil Company. From the data, (1) prepare entries, and (2) prepare an income statement for Complex Oil Company for 2016, assuming revenue to the company from oil sales is $1,200,000. Expense lifting costs as lease operating expense. dry Transactions, 2016 Lease A Lease B Lease C *a. Acquisition costs of undeveloped leases (1/8 RI) $ 60,000 $ 30,000 $ 20,000 *b. G&G costs 60,000 70,000 90,000 *c. Drilling costs 200,000 200,000 250,000 d. Drilling results: Drilling Drilling Drilling completed completed; not Proved reserves 700,000 bbl completed Proved developed reserves 300,000 bbl (as of 12/31) e. Production 10,000 bbl f. Lifting costs $ 50,000 g. December 31 Recorded Impaired DD&A lease 40% Transactions, 2017 h. Assume on January 2 of the second year (2017) that disaster struck both Lease A and Lease B. Give the entries to record abandonment of Lease A and Lease B. Assume equipment costing S15,000 was salvaged from Lease A. Assume this is not a post-balance sheet event that would give rise to changes in the balance sheets or income statements of previous years