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Montano1993 [528]
3 years ago
12

ConsecoConseco Oil Company has an account titled Oil and Gas Properties. ConsecoConseco paid $ 6 comma 600 comma 000$6,600,000 f

or oil reserves holding an estimated 1 comma 000 comma 0001,000,000 barrels of oil. Assume the company paid $ 570 comma 000$570,000 for additional geological tests of the property and $ 450 comma 000$450,000 to prepare for drilling. During the first​ year, ConsecoConseco removed and sold 72 comma 00072,000 barrels of oil. Record all of ConsecoConseco​'s ​transactions, including depletion for the first year.
Business
1 answer:
cluponka [151]3 years ago
5 0

Answer:

The journal entries are as follows:

(a) Oil and gas properties A/c     Dr. $6,600,000

To cash                                                                      $6,600,000

(To record purchase)

(b)

Oil and gas properties A/c($570,000 + $450,000)  Dr. $1,020,000  

To cash                                                                                               $1,020,000

(To record additional testing and preparations)

(c) Depletion expense A/c      Dr. $548,640

To accumulated depletion                             $548,640

(To record Depletion)

Workings:

Depletion expense:

=7,620,000\times\frac{72,000}{1,000,000}

= $548,640

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Cultural tourism or World Heritage sites are often designated by:
Mrrafil [7]

Answer:

The correct answer is letter "B": United Nations Educational, Scientific, and Cultural Organization.

Explanation:

The United Nations Educational, Scientific, and Cultural Organization (UNESCO) is a specialized organism of the United Nations (UN) System. UNESCO works towards creating proper conditions for communication between civilizations, cultures, and peoples, funded in respect of human values. At the same time, contributes to peace conservation and worldwide security through the promotion of cooperation between countries through science, culture, communication, and information.

The UNESCO World Heritage Committee is the board in charge of designing cultural and natural World Heritage sites such as the <em>Taj Mahal </em>(India), the <em>Historic Sanctuary of Machu Picchu</em> (Peru) or the <em>Serengeti National Park</em> (Tanzania).

5 0
3 years ago
Equities are claims of ownership in a corporation. Please select the best answer from the choices provided T F
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That statement is True.

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3 0
3 years ago
On June 1 of the current tax year Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership.
Helga [31]

Solution:

The relationship is called the deal to run the company by adding money, by distributing the business risk, etc. We share profit and loss from their relationship and the net profit is the partner's profits.

Calculating the basis of partners

Elisa's basis in partnership :

Particulars                                                         Amount $

Cash contribution                                                  200,000

Add:  

Share of the liability on the contributed land   70,000

Share of the construction debt                           10,000

Share of the accounts payable debt                     4,100

Share of partnerships taxable income                    15,000

Hence, Elisha's basis in the partnership on December 30. $299,100

Ezra's basis in partnership

Particular                                                             Amount $

Land and building                                                     340,000

Less: Debt assumed by the partnership             140,000

Add:  

Share of liability on contributed land                      70,000

Share of construction debt                                      10,000

Share of accounts payable debt                               4,100

Share of partnerships taxable income                      15,000

Ezra's basis in partnership on December 30. $299,100

8 0
3 years ago
An import​ quota: A. Is always more costly to a country than an import tariff. B. Has the same effects on welfare as an import t
Ivahew [28]

Answer:

D. Generates rents that might go to foreigners.

Explanation:

An import quota is the trade restriction imposed by the government on the quantity of the particular commodity to be imported from another country. It protects domestic producers from foreign competition. Overseas goods are generally very cheap compared to locally produced goods, which can destroy a business from the market and can make foreign companies be the leader of the market, who can control the price and quality of the product. Therefore, it very helpful to the local producer in sustaining and generating profit in the market.

3 0
3 years ago
Explain what a cash budget is and why it is important for all businesses.
deff fn [24]

Answer:

A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.

Explanation:

4 0
3 years ago
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