An oil well cost $2,090,000 and is calculated to hold 350,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round anyintermediate calculations to the nearest cent, and your final answer to the nearest dollar)O A. Depletion Expense - Oil ReserveAccumulated Depletion - Oil ReserveOB. Oil Reserve InventoryAccumulated Depletion - Oil ReserveOC. Cost of Goods Sold - Oil ReserveAccumulated Depletion - Oil ReserveO D. Depletion Expense - Oil ReserveOil Revenue328,350328,350328,350328,350328,350328,350328,350328,350SICER

The depreciation expense is recorded for the fixed assets of the business. The depletion expense is…

News and is calculated to hold 350.000 barrels of oll There is no residual value Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round any intermediate calculations to the nearest and your final answer to the nearest dollar) OA. Depletion Expense - Oil Reserve Accumulated Depletion - Oil Reserve OB. Oil Reserve Inventory Accumulated Depletion - Oil Reserve OC. Cost of Goods Sold - Oil Reserve Accumulated Depletion - Ol Reserve OD. Depletion Expense - Oil Reserve Oil Revenue 328,350 328,350 328,350 328.350 328,350 328,350 328,350 328,350 CIT

News and is calculated to hold 350.000 barrels of oll There is no residual value Which journal entry is needed to record the expense for the extraction of 55,000 barrels of oil during the year? All 55,000 barrels were sold during the year. (Round any intermediate calculations to the nearest and your final answer to the nearest dollar) OA. Depletion Expense - Oil Reserve Accumulated Depletion - Oil Reserve OB. Oil Reserve Inventory Accumulated Depletion - Oil Reserve OC. Cost of Goods Sold - Oil Reserve Accumulated Depletion - Ol Reserve OD. Depletion Expense - Oil Reserve Oil Revenue 328,350 328,350 328,350 328.350 328,350 328,350 328,350 328,350 CIT

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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