Carter Co.acquired drilling rights for $18,550,000.The oil deposit is estimated at 74,200,000 gallons.During the current year,6,000,000 gallons were drilled.Journalize the adjusting entry at December 31 to recognize the depletion expense.

$\begin{array}{|c|l|c|c|c|}
\hline \text { Date } & \text { Description } & \begin{array}{c}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline \
\hline \
\hline
\end{array}$

Question

Carter Co.acquired drilling rights for $18,550,000.The oil deposit is estimated at 74,200,000 gallons.During the current year,6,000,000 gallons were drilled.Journalize the adjusting entry at December 31 to recognize the depletion expense.

$\begin{array}{|c|l|c|c|c|}
\hline \text { Date } & \text { Description } & \begin{array}{c}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline  \
\hline \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of Carter Co.acquired drilling rights for $18,550,000.The oil deposit is estimated at 74,200,000 gallons.During the current year,6,000,000 gallons were drilled.Journalize the adjusting entry at December 31 to recognize the depletion expense.

$\begin{array}{|c|l|c|c|c|}
\hline \text { Date } & \text { Description } & \begin{array}{c}
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline  \
\hline \
\hline
\end{array}$

Carter CoAcquired Drilling Rights for $18,550,000