Question 37 McKevin Oil Company incurred the following costs during the year: 1. Acquisition costs...
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Question 37 McKevin Oil Company incurred the following costs during the year: 1. Acquisition costs for a 300-acre lease: lease bonus S40/acre; other costs incurred in acquiring the property, S950. 2. Dry-hole costs of an exploratory well, S305,000 3. Successful exploratory well costs, $400,000. 4. Cost of production facilities such as flow lines and separators, S233,000. 5. Production costs, S60,000. Required: Prepare journal entries for the above transactions using the successful efforts method of accounting. 110
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