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17. West Coast Petroleum holds huge reserves of oil assets. Assume that at the end of 2018, West Coast Petroleum's cost of oil reserves totaled $108,000,000, representing 9,000,000 barrels of oil. Read the requirements? Requirement 1. Which method does West Coast Petroleum use to compute depletion? (1) is the method used to compute depletion. Requirement 2. Suppose West Coast Petroleum removed and sold 500,000 barrels of oil during 2019. Journalize depletion expense for 2019. (Assume no residual value. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit (2) (3) (4) (5) (6) 1: Requirements 1. Which method does West Coast Petroleum use to compute depletion? 2. Suppose West Coast Petroleum removed and sold 500,000 barrels of oil during 2019. Journalize depletion expense for 2019. (1) O Double-declining-balance Straight-line Units-of-production (2) O O Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves Depreciation Expense-Oil Reserves Accumulated Depreciation-Oil Reserves O Oil Reserves O Cash (3) O O Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves O Depreciation Expense-Oil Reserves Accumulated Depreciation-Oil Reserves o Oil Reserves Cash (4) O O Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves Depreciation Expense-Oil Reserves Accumulated Depreciation-Oil Reserves Oil Reserves O Cash (5) O O Depletion Expense-Oil Reserves Accumulated Depletion-Oil Reserves Depreciation Expense-Oil Reserves Accumulated Depreciation-Oil Reserves O Oil Reserves Cash (6) O To record payment of costs associated with purchase of oil reserves. To record purchase of oil reserves. To record depletion

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