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

تمرين 19

Alan Oil Corporation, located in Denver, Colorado, has been operating for three years.
Alan uses full cost accounting and excludes all possible costs from the amortization
base. The following account balances are as of the end of 2020. REqUIRED: Give any entries necessary for the following events and transactions:
a. Lease A was abandoned on March 20, 2021.
b. Lease B was proved on May 13.
c. Insignificant leases costing $80,000 were acquired during 2021.
d. Lease E was abandoned early in July.
e. Lease F was proved October 21.
f. At December 31, Alan decides that Lease D should be impaired an
additional $150,000.
g. At December 31, Alan decides to continue its policy of maintaining an allowance
for impairment equal to 60% of unproved insignificant leases.