Hays Oil Company had the following transactions during the year: a. Acquired an undeveloped lease, $55,000...
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Hays Oil Company had the following transactions during the year: a. Acquired an undeveloped lease, $55,000 b. Paid a drilling contractor as follows: Footage rate for drilling.. Equipment costs (casing). Equipment costs (tanks, flow lines, and labor to install equipment).. c. Paid costs in evaluating the well, $20,000 d. Completion costs for fracturing and perforating, $25,000 $250,000 75,000 50,000 REQUIRED: Record the transactions. Hays Oil Company had the following transactions during the year: a. Acquired an undeveloped lease, $55,000 b. Paid a drilling contractor as follows: Footage rate for drilling.. Equipment costs (casing). Equipment costs (tanks, flow lines, and labor to install equipment).. c. Paid costs in evaluating the well, $20,000 d. Completion costs for fracturing and perforating, $25,000 $250,000 75,000 50,000 REQUIRED: Record the transactions.
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Journal Entries No Accounts Debit Unproved property 55000 a Cash To record lease paid Well i... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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