Cassady has the following capitalized costs related to unproved Lease One (600 acres) $40,000. Cassady...
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Accounting
Cassady has the following capitalized costs related to unproved Lease One (600 acres) $40,000. Cassady negotiated a new lease on Lease One immediately following the end of the primary term, paying a lease bonus of $150/acre.
Group of answer choices
A. Debit Unproved Property $40,000; Credit Cash $40,000
B. Debit Surrendered Lease Expense $40,000; Credit Cash $40,000
C. Debit Proved Property $90,000; Credit Cash $90,000
D. Debit Surrendered Lease Expense $40,000; Credit Unproved Property $40,000; and Debit Unproved Property $90,000; Credit Cash $90,000
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