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

Exercise 25

Core Petroleum started its oil and gas exploration and production business in 2015.
During the years 2015 and 2016, the company provided the following information
relating to leases located both in the United States and in Canada: a. Record the above information for both years. Ignore revenue entries.
b. Compute and record DD&A for both years. Assume the revenue method may
be ignored in the second year. If there is not a significant difference between the
revenue basis and energy basis in the first year (less than $150,000), use the energy
basis (equivalent Mcf). Assume that all possible costs are included in DD&A.
c. Compute DD&A using a common unit of measure based on Mcf, assuming Core
Oil Company used successful efforts accounting instead of full cost accounting.