Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

تمرين 10

Diane Oil Company obtained shooting rights on 10,000 acres at $2/acre and then hired
an independent geological firm to conduct the initial G&G work for $60,000. As a
result of the G&G work, Diane Company decided to lease 500 acres (ignore acquisition
costs) and hired the same company to perform detailed G&G studies on the 500 acres
at a cost of $15,000. Give the entries to record these transactions.