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

تمرين 1

Valve Oil Corporation has a waterflooding system for a reservoir in Oklahoma. Costs
of operating the system for the month of August were $20,400.
a. Give the entry to record operating expense, assuming the reservoir underlies only Lease A.
b. Assume the reservoir underlies the following three leases: Give the entry to record operating expense, assuming allocation based on the
volume of water.