The following costs for Davison Lease were all incurred during 2020. Acquisition Costs................................................................................................. $30,000 G&G Costs.......................................................................................................... $80,000
Question:
Acquisition Costs…................................................................................................. $30,000
G&G Costs….......................................................................................................... $80,000
Exploratory dry holes…........................................................................................ $1,500,000
Successful exploratory holes…............................................................................. $350,000
Development wells, dry….................................................................................... $200,000
Development wells, successful…......................................................................... $475,000
Cost of production facilities….............................................................................. $250,000
Production costs…................................................................................................ $60,000
DD&A*….............................................................................................................. $55,000
Accumulated DD&A…........................................................................................ $150,000
Revenue from sale of oil…................................................................................... $225,000 *
Depreciation, depletion, and amortization
REQUIRED:
Prepare the 2020 income statements and unclassified partial balance sheets for a successful efforts (SE) company.
Expert Answer:
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
