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

تمرين 21

Give the journal entries necessary to record the following expenditures made by Lomax
Company during 2013:
a. Recompletion costs on well #560 of $50,000 for IDC and $20,000 for equipment.
The well was recompleted at 12,000 feet, which was a new producing formation.
b. Recompletion costs on well #820 of $90,000 for IDC and $10,000 for equipment.
The well was deepened to 15,000 feet to evaluate a new unproved horizon. Proved
reserves were not found.
c. Workover costs on well #310 of $15,000 necessary to restore production after sand
had clogged the tubing.