On January 4, 2017, David Company paid $250,000 for an oil field that contains an estimated 20,000 barrels of oil. The oil field has no residual value. 5,000 barrels are extracted and sold in 2017 and 6,500 barrels are extracted and sold in 2018.
Required:
Prepare all journal entries. Explanations are not required.

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The Answer of On January 4, 2017, David Company paid $250,000 for an oil field that contains an estimated 20,000 barrels of oil. The oil field has no residual value. 5,000 barrels are extracted and sold in 2017 and 6,500 barrels are extracted and sold in 2018.
Required:
Prepare all journal entries. Explanations are not required.

On January 4, 2017, David Company Paid $250,000 for an Oil