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

تمرين 16

Seaside Oil Corporation has an offshore lease that cost $4,000,000. The total acreage
is 40,000 acres. Proved reserves are found on a 10,000 acre tract that is included in the
40,000 acres. Management decides to reclassify only the proved area acreage.
Prepare the entry to reclassify the acreage.