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

تمرين 1

During the calendar year 2015, Deep Corporation had the following transactions on an
unproved property:
Grant #1 was drilled, with IDC costs of $310,000 and equipment costs of $42,000.
The well was determined to be dry and was plugged and abandoned at a cost of
$10,000. Salvaged equipment placed in inventory was valued at $8,000.
Prepare journal entries for the transactions.