Groundhog Petroleum had the following transactions in 2022 concerning test-well contributions: a.Contracted with Parsons...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Groundhog Petroleum had the following transactions in 2022 concerning test-well contributions: a.Contracted with Parsons Energy Corporation, agreeing to pay $50,000 if a well was drilled on Parsons lease to a depth of 10,000 feet. b.Contracted to pay Proton Oil Company $40,000 if a well being drilled on Protons property was dry. c.Agreed to pay Gaspar Oil Company $100,000 if a well being drilled reached a depth of 7,500 feet. Results from the above transactions were the following:
a.Because of mechanical difficulties, the Parsons well was abandoned at 9,500 feet b.The Proton well was dry c.The Gaspar well was completed as a producer at 12,000 feet. Prepare entries for the above transactions, assuming Groundhog Petroleum fulfilled its contractual obligations.
Groundhog Petroleum had the following transactions in 2022 concerning test-well contributions:
a.Contracted with Parsons Energy Corporation, agreeing to pay $50,000 if a well was drilled on Parsons lease to a depth of 10,000 feet.
b.Contracted to pay Proton Oil Company $40,000 if a well being drilled on Protons property was dry.
c.Agreed to pay Gaspar Oil Company $100,000 if a well being drilled reached a depth of 7,500 feet.
Results from the above transactions were the following:
a.Because of mechanical difficulties, the Parsons well was abandoned at 9,500 feet
b.The Proton well was dry
c.The Gaspar well was completed as a producer at 12,000 feet.
Prepare entries for the above transactions, assuming Groundhog Petroleum fulfilled its contractual obligations.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.