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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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