4. Amplify Petroleum holds huge reserves of oil. Assume that at the end of 2017, Amplify Petroleum's cost of oil reserves totaled $80,000,000, representing 100,000,000 barrels of oil. Suppose Amplify Petroleum removed and sold 20,000,000 barrels of oil during 2018 Journalize depletion expense for 2018. (Assume na residual value. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves To record depletion Debit 16,000,000 Credit 16,000,000

4. Amplify Petroleum holds huge reserves of oil. Assume that at the end of 2017, Amplify Petroleum's cost of oil reserves totaled $80,000,000, representing 100,000,000 barrels of oil. Suppose Amplify Petroleum removed and sold 20,000,000 barrels of oil during 2018 Journalize depletion expense for 2018. (Assume na residual value. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves To record depletion Debit 16,000,000 Credit 16,000,000

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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Manashukh
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D1.
Subject: accounting