On May 31, 2010, Barren Oil Company purchased an oil well with estimated reserves of 200,000 barrels
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Required:
Prepare journal entries for the following:
1. Record the purchase of the oil well.
2. During 2010, 16,000 barrels of oil were extracted from the well. Record the depletion expense for 2010.
3. During 2011, 21,000 barrels of oil were extracted from the well. Record the depletion expense for 2011.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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