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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 5
Philco Company owns a proved property with the following costs: 
Philco Company sells 100% of the working interest in the property to Company Q
for $600,000.
a. Give the entry for Philco Company to record the sale assuming that Philco uses the
successful efforts method.
b. Give the entry for Philco Company to record the sale if the property had sold
for $400,000.
c. Give the entry for part a and part b, assuming Philco Company is a full cost
company, and the reserves sold constitute 15% of Philco's share of reserves in the
cost center.
Philco Company sells 100% of the working interest in the property to Company Qfor $600,000.
a. Give the entry for Philco Company to record the sale assuming that Philco uses the
successful efforts method.
b. Give the entry for Philco Company to record the sale if the property had sold
for $400,000.
c. Give the entry for part a and part b, assuming Philco Company is a full cost
company, and the reserves sold constitute 15% of Philco's share of reserves in the
cost center.
Explanation
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Verified
P Company owns a proved property which h...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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