1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Which best describes the results provided by market research?
Troyanec [42]
<span>Market research tells producers what consumers want and what they're willing to pay.

Marketers perform market research so they can accurately determine who their audience is, what people will buy, how much they will buy and how much they will pay for it. Without conducing this research they could be spending money trying to reach the wrong audience. They could also have their product set too high or too low and potentially lose money/customers. 
</span>
8 0
3 years ago
Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific
Savatey [412]

Answer:

Option "A" is correct. Expected amount of misstatements

Explanation:

7 0
2 years ago
Read 2 more answers
Which of the following is not true of a budget
Ulleksa [173]
<span>A. Once you finish making your budget, you should not change it.</span>
6 0
3 years ago
According to the article, what should you do if you suspect your boss of unethical business practices?
Aleksandr-060686 [28]

Answer:

Report it to the right person

Explanation:

According to the article titled "What to do when you spot your employer doing something illegal" written by Catherine Conlan.

It says the best thing to do is to report it to the right person.

This is evident when it is stated in the article that "If you reasonably believe your employer is doing something illegal or unethical, you should first bring it to your supervisor’s attention... If it’s your supervisor you suspect, exhaust the chain of command within the company.

Hopefully, the company will investigate the matter. If no one within the chain of command responds, then there is generally a government agency with whom one can file a complaint,"

8 0
3 years ago
"Gamboa, Inc. sold 100 selfie sticks for $25 each. If the selfie sticks had an average cost of $1 to produce, how much profit di
IRISSAK [1]

Answer:

$2400

Explanation:

Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:

Average cost = Total cost / number of units.

Given that:

The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25

From Average cost = Total cost / number of units.

Substituting gibes:

$1 = Total cost / 100 selfie stick

Total cost = $1 × 100 = $100

Total cost = $100

Revenue = Price per item × Number of items

Revenue = $25 × 100 = $2500

Profit = Revenue - Total cost

Profit = $2500 - $100 = $2400

Total cost = $2400

5 0
3 years ago
Other questions:
  • True or false: savings accounts generally offer a higher yield than money markets.
    11·2 answers
  • In three to four sentences, explain how taxes influence consumer decisions and buying power.
    11·2 answers
  • How does the automated system improve the efficiency and timeliness of financial <br> statements?
    8·1 answer
  • Resources include: Personnel, Supplies, Equipment, and _______________. Select the missing item from below:
    9·1 answer
  • Fabian was planning to start his own publishing business. He met a few people who had set up their own publishing agencies and m
    11·2 answers
  • Writing a check on an account with insufficient funds is allowed under certain conditions.
    8·1 answer
  • The ways a product can reach a customer is called
    15·1 answer
  • Le Son, Inc., has current liabilities of $11,700 an accounts receivable of $15,200. The firm has total assets of $43,400 and net
    14·1 answer
  • The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investme
    13·1 answer
  • the narnian stock market had a rate of return of 45% last year, but the inflation rate was 30%. what was the real rate of return
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!