Chat with AI
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031 Exercise 1
Company Z (a successful efforts company) owns 100% WI in a lease in which Dudley
Smith owns a 1/8 royalty interest. Company Z conveys to Company Q 30% of the
working interest in exchange for a cash consideration of $10,000. The undeveloped
lease has capitalized costs of $40,000 and an impairment allowance of $15,000.
a. Give the entry for Company Z to record the conveyance.
b. Give the entry if the interest had sold for $30,000.
Smith owns a 1/8 royalty interest. Company Z conveys to Company Q 30% of the
working interest in exchange for a cash consideration of $10,000. The undeveloped
lease has capitalized costs of $40,000 and an impairment allowance of $15,000.
a. Give the entry for Company Z to record the conveyance.
b. Give the entry if the interest had sold for $30,000.
Explanation
Verified
Verified
Successful efforts method
The corporati...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
