Creole Oil Company charges all costs under an Authorization for Expenditure (AFE) to a deferred...
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Creole Oil Company charges all costs under an Authorization for Expenditure (AFE) to a deferred asset account. Creole has a calendar year fiscal year end. Under AFE 134005 Creole had G&G exploration costs of $162,000 billed December 19, 2021. Make the original entry for the cost, the adjusting entry on Jan 2, 2022, and the reversing entry Jan 3, 2022
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