Williams Petroleum, a new successful efforts company, began operations in 2018 with the acquisition of four individually significant unproved leases. Give the entries, assuming the following transactions. You may combine entries for items marked with an asterisk (*).

†Assume both criteria for deferring classification of the well are met.

Transcribed Image Text:

Year Transaction 2018 Lease bonuses* G&G costs* Drilling costs IDC Equipment Drilling results 2019 Delay rentals* Drilling costs IDC Equipment Drilling results 2020 Delay rentals* Drilling costs IDC Equipment Drilling results Lease A $50,000 60,000 None None None 4,000 None Well 1 Well 2 (exploratory) (exploratory) 275,000 225,000 50,000 50,000 Drilling completed; proved reserves None Lease B $ 40,000 50,000 Well 2 (development) 300,000 80,000 Dry Well 1 Well 1 (exploratory) (exploratory) 300,000 250,000 125,000 Well dry; property impaired 25% results unde- Dry: abandoned lease None None Lease C $ 70,000 75,000 None 50,000 Drilling completed; termined+ 3,000 None None Still undeter- mined; both criteria no longer met 3,000 None None None Lease D $ 55,000 90,000 Well 1 (exploratory) 150,000 40,000 Drilling not completed None Well 1 60,000 40,000 Drilling completed; proved reserves None Well 2 (development) 250,000 100,000 Drilling completed; proved reserves