9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that contained a $3 per acre delay rental clause. Drilling operations were started on June 15, 2005 and completed on October 16, 2005. The well, determined to be dry, was plugged and abandoned. No further drilling operations were started during the primary term. All required delay rentals were paid. Give all entries relating to the delay rental requirement.

9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that contained a $3 per acre delay rental clause. Drilling operations were started on June 15, 2005 and completed on October 16, 2005. The well, determined to be dry, was plugged and abandoned. No further drilling operations were started during the primary term. All required delay rentals were paid. Give all entries relating to the delay rental requirement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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