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Seif Company made the following expenditures in 2021: a. Recompletion costs on well # 560 of $200,000 for IDC and $180,000 for equipment. The well was recompleted at 15,000 feet, a new producing formation. b. Re-entered well #820 and incurred $190,000 for IDC and $101,000 for equipment. The well was deepened to 16,000 feet to evaluate a new unproved horizon. Proved reserves were not found. c. Workover costs on well # 310 of $211,000 are necessary to restore production after the sand had clogged the tubing.

Seif Company made the following expenditures in 2021: a. Recompletion costs on well # 560 of $200,000 for IDC and $180,000 for equipment. The well was recompleted at 15,000 feet, a new producing formation. b. Re-entered well #820 and incurred $190,000 for IDC and $101,000 for equipment. The well was deepened to 16,000 feet to evaluate a new unproved horizon. Proved reserves were not found. c. Workover costs on well # 310 of $211,000 are necessary to restore production after the sand had clogged the tubing.

FINANCIAL ACCOUNTING
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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Seif Company made the following expenditures in 2021: a. Recompletion costs on well # 560 of $200,000 for IDC and $180,000 for equipment. The well was recompleted at 15,000 feet, a new producing formation. b. Re-entered well # 820 and incurred $190,000 for IDC and $101,000 for equipment. The well was deepened to 16,000 feet to evaluate a new unproved horizon. Proved reserves were not found. c. Workover costs on well #310 of $211,000 are necessary to restore production after the sand had clogged the tubing. REQUIRED: Give the entries to record the above expenditures.
Transcribed Image Text:Seif Company made the following expenditures in 2021: a. Recompletion costs on well # 560 of $200,000 for IDC and $180,000 for equipment. The well was recompleted at 15,000 feet, a new producing formation. b. Re-entered well # 820 and incurred $190,000 for IDC and $101,000 for equipment. The well was deepened to 16,000 feet to evaluate a new unproved horizon. Proved reserves were not found. c. Workover costs on well #310 of $211,000 are necessary to restore production after the sand had clogged the tubing. REQUIRED: Give the entries to record the above expenditures.
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