Jones Oil Co. acquired Oil Rights for $3,000,000. It was estimated that the well would produce...

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Jones Oil Co. acquired Oil Rights for $3,000,000. It was estimated that the well would produce 1,500,000 barrels. During the 20Y9, 40,000 barrels was collected and sold. 1. Determine the depletion expense for the current year ended December 31, 20Y9. $ 2. Illustrate the effects on the Accounting Equation: showing the effects of purchasing the Rights in 20Y9 and the Accumulated Depletion at the end of 20Y9. • The account names to use: Accumulated epietion, Cash, Oil Rights, Depletion Exper Liabil %3D Assets Date Account Amount Account 20Y8 cash -3000000 oil rights 3000000 20Y9 accumulated depletion 80000 Jones Oil Co. acquired Oil Rights for $3,000,000. It was estimated that the well would produce 1,500,000 barrels. During the 20Y9, 40,000 barrels was collected and sold. 1. Determine the depletion expense for the current year ended December 31, 20Y9. $ 2. Illustrate the effects on the Accounting Equation: showing the effects of purchasing the Rights in 20Y9 and the Accumulated Depletion at the end of 20Y9. • The account names to use: Accumulated epietion, Cash, Oil Rights, Depletion Exper Liabil %3D Assets Date Account Amount Account 20Y8 cash -3000000 oil rights 3000000 20Y9 accumulated depletion 80000

Answer rating: 100% (QA)

1 Depletion expense for the current year ended Dec 31 20Y9 3000000 400001500000 80000 2 Ex... View the full answer