Black Cloud Oil Company incurred the following costs during 2021: Began drilling an exploratory-type stratigraphic test well.
Question:
Black Cloud Oil Company incurred the following costs during 2021:
Began drilling an exploratory-type stratigraphic test well. Incurred $250,000 of IDC.
Began drilling an exploratory-type stratigraphic test well, incurred $400,000 of IDC. And $50,000 in equipment costs.
Began drilling a development-type stratigraphic test well, incurred $500,000 of IDC.
Began drilling a development-type stratigraphic test well, incurred $1,000,000 of IDC and $150,000 in equipment costs
The following results were obtained in late 2021:
The well was determined to be dry.
The well found proved reserves
The well found proved reserves.
The well was determined to be dry.
Prepare the necessary entries.
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying