17. Lynx Oil Company, a successful efforts company, had the following costs as of December 31, 2018 related to the Speer Lease: • Proved property: $200,000 • Accumulated DD&A - proved property: $60,000 • Well No. 1-Wells and equipment: $700,000 • Well No. 2-Wells and equipment: $840,000 • Accumulated DD&A-All Wells: $1,000,000 During early January 2019, Well No. 2 quit producing and was abandoned. In March 2019, Well No 1. quit producing, and the well and the lease were abandoned. Prepare all of the necessary journal entries for January 2019 and March 2019.

17. Lynx Oil Company, a successful efforts company, had the following costs as of December 31, 2018 related to the Speer Lease: • Proved property: $200,000 • Accumulated DD&A - proved property: $60,000 • Well No. 1-Wells and equipment: $700,000 • Well No. 2-Wells and equipment: $840,000 • Accumulated DD&A-All Wells: $1,000,000 During early January 2019, Well No. 2 quit producing and was abandoned. In March 2019, Well No 1. quit producing, and the well and the lease were abandoned. Prepare all of the necessary journal entries for January 2019 and March 2019.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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Similar questions

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