Revenue and costs for ABC Company for the year 2019 are presented below:• Revenue. .• G&G cost.$300,000300,000• Acquisition costs..• Exploratory Dry holes..• Successful exploratory holes. . 1,500,000• Development wells, dry .• Development wells, successful . 400,000• Production facilities..• Production cost..1,000,0002,000,000500,000350,00050,000Successful effortsFull cost• Amortization for 2019$100,000$200,000• Accumulated DD&A250,000350,000Required:1- Prepare the income statement for ABC Oil Company for the year ended 2019 under the two accounting methods.2- Show the difference explanation between the two accounting methods Net income/Loss.

A) INCOME STATEMENT FOR 2019 ( SUCCESSFUL EFFORTS (SE) AND FULL COST(FC) ) PARTICULAR detail (SE)…

Revenue and costs for ABC Company for the year 2019 are presented below: Revenue. .. $300,000 G&G cost.. Acquisition costs. - Exploratory Dry holes . 2,000,000 Successful exploratory holes . 1,500,000 Development wells, dry. Development wells, successful. 400,000 Production facilities . 350,000 Production cost . 300,000 1,000,000 500,000 50,000 Successful efforts Full cost - Amortization for 2019 - Accumulated DD&A $100,000 $200,000 250,000 350,000 Required: - Prepare the income statement for ABC Oil Company for the year ended 2019 under the two accounting methods. - Show the difference explanation between the two accounting methods Net income/Loss.

Revenue and costs for ABC Company for the year 2019 are presented below: Revenue. .. $300,000 G&G cost.. Acquisition costs. - Exploratory Dry holes . 2,000,000 Successful exploratory holes . 1,500,000 Development wells, dry. Development wells, successful. 400,000 Production facilities . 350,000 Production cost . 300,000 1,000,000 500,000 50,000 Successful efforts Full cost - Amortization for 2019 - Accumulated DD&A $100,000 $200,000 250,000 350,000 Required: - Prepare the income statement for ABC Oil Company for the year ended 2019 under the two accounting methods. - Show the difference explanation between the two accounting methods Net income/Loss.

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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