Question
Uranus Energy Company owned the following unproved property at 12/31/73: Significant Leases Cost Impairment Insignificant Leases Cost Total Impairment Lease A $440,000 $220,000 Lease C
Uranus Energy Company owned the following unproved property at 12/31/73:
Significant Leases | Cost | Impairment | Insignificant Leases | Cost | Total Impairment |
Lease A | $440,000 | $220,000 | Lease C | $85,000 | |
Lease B | $660,000 | $240,000 | Lease D | $70,000 | |
Lease E | $65,000 | ||||
Lease F | $55,000 | ||||
$275,000 | $85,000 |
Prepare journal entries for 2074, assuming the following events:
a. Proved reserves were found on Lease A and Lease B.
b. Lease D was sold for $75,000.
c. Lease F was abandoned.
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Fundamentals Of Oil And Gas Accounting
Authors: Charlotte Wright
6th Edition
9781593703639
