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

تمرين 2

Bammel Oil Company, a successful efforts company, has an unproved lease for which
it paid $50,000. The property is not considered to be individually significant. Make the
journal entries to record Bammel Oil Company's conveyance of 20% of the working
interest in return for:
a. $10,000 cash
b. $70,000 cash