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

تمرين 18

Bartz Corporation leased 10,000 acres with a lease bonus of $80/acre. Delay rentals are
to be at a rate of $5/acre. The lease specified that Bartz Corporation could abandon the
lease in 1,000 acre portions. At the end of year 1, Bartz Corporation abandoned 4,000
acres and paid a delay rental on the remainder.
Prepare journal entries for the activities.