Zinc Company acquired 100% of the working interest in an unproved property at a cost of $100,000.

Question:

Zinc Company acquired 100% of the working interest in an unproved property at a cost of $100,000. Zinc later sold the working interest, retaining an overriding royalty interest (ORI).

REQUIRED: Give the entry to record the conveyance of the working interest, assuming Zinc is a successful efforts company and received $80,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

See More Books

Question Posted: Mar 08, 2024 10:00 AM

See More Questions

Journal entry: June 3, 2021 Accounts Receivable 26,000 Service Receivable (debit) 26,000 (credit) June 8, 2021 Cash 14,210 (Debit) Sales Discount 290 (Debit) Accounts Receivable 14,500 (credit) Nov...
Purple Company purchases 100% of the working interest in an unproved property at a cost of $100,000. Purple later sells the WI, retaining an overriding royalty interest. Purple is a successful...
Filbert Oil Company owns 100% of the working interest in an unproved lease that it acquired for $100,000. The property is individually significant, and individual impairment of $20,000 had been...
Solve the inequalities and show the solution sets on the real line. -2x > 4
Lopez Landscaping has the following data for the December 31 adjusting entries: a. Each Friday, Lopez pays employees for the current week's work. The amount of the weekly payroll is $6,500 for a...
If the aeration basin from question 11 is 130 ft long, 35 ft wide, and 15 ft deep, what is its organic loading in pounds of BOD/day/1,000 ft3?
Explain how the control variate technique is implemented.
At the Department of Motor Vehicles (DMV) the process of getting license plates for your car begins when you enter the facility and take a number. You walk 50 feet to the waiting area. During your...
Discuss the following: a) b) c) The usefulness of models in managerial decision-making within firms. (5 marks) Process of theory formulation/model building (using an example of a theory/model known...
Frontier Company, a successful efforts company, has a 1/6 royalty interest in an unproved property. Assume that Frontier Companys net capitalized cost in the property is $200,000. REQUIRED: Give the...
Four companies own adjacent leases that share a common reservoir. The companies each have a 100% working interest in their respective leases in which they have the following investment: The companies...
Gemma Jones owns Australia Works, which provides employment placement services. The unadjusted trial balance on 30 June 2016 below was prepared by her accountant. The following additional information...
A firm operates 2 0 0 days per year. The production rate of the firm is 2 0 0 couplings per day The steady coupling rate is 5 0 per day Additionally, it takes $ 4 for storing each coupling per year....
Alliance Case Assignment FIN 600 Capital Investment and Financing Decisions - University of Kentucky Spring 2020 The purpose of this document is to outline the proper format for writing up the...
The maximum distance between shots for exposed segmented bends is considered to be?
I need help finishing a JavaFX GUI program with exception handling to play a simple game of Hangman. The program will read from a dictionary file that I will provide in a zip file. The user should...
Discuss at least two strategies that you would recommend to your employees to help improve their work-life balance during these challenging times. Consider ways in which you would encourage them to...
(a) Using the Bohr model, calculate the speed of the electron in a hydrogen atom in the n = 1,2 and 3 levels. (b) Calculate the orbital period in each of these levels. (c) The average lifetime of the...
Using a graphing utility, graph y = cot -1 x.
If a producer creates a really revolutionary new product and consumers can learn about it and purchase it at a website, is any additional marketing effort really necessary? Explain your thinking.
List your activities for the first two hours after you woke up this morning. Briefly indicate how marketing affected your activities.
Distinguish between the micro and macro views of marketing. Then explain how they are interrelated, if they are.
7. Give the precondition, postcondition, and loop invariant assertion for the following function. Consider the size of the array and how many items are stored in the array (some array positions may...
1- Create a new script that is called HW11a.m and save it. The script will do the following: a. Evaluate the following sum using a for loop: 10 x = n n-1 b. Display the value of x using disp command...
2. (8 points) Consider the following list of nouns and noun phrases: address make cars Anthony's car year Porsche total estimated BMW service quote sales tax John's class model charges estimated...

Zinc Company acquired 100% of the working interest in an unproved property at a cost of $100,000.

Question:

Step by Step Answer:

Fundamentals Of Oil And Gas Accounting

Students also viewed these Business questions