Mateen Oil and Gas Company provides the following data: 2019 2020 2021 Unproved property acquisition 35,000 55,000 81,000 Proved property acquisition 60,000 50,000 70,000 G&G 450,000 430,000 475,000 Exploratory drilling (including dry hole) Development drilling 318,000 473,000 535,000 155,000 95,000 190,000 Extensions and discoveries 83,000 78,000 85,600 Equipments 60,000 55,000 85,000 Use formula 1 without revision to find the Finding costs per BOE for 2020.

Mateen Oil and Gas Company provides the following data: 2019 2020 2021 Unproved property acquisition 35,000 55,000 81,000 Proved property acquisition 60,000 50,000 70,000 G&G 450,000 430,000 475,000 Exploratory drilling (including dry hole) Development drilling 318,000 473,000 535,000 155,000 95,000 190,000 Extensions and discoveries 83,000 78,000 85,600 Equipments 60,000 55,000 85,000 Use formula 1 without revision to find the Finding costs per BOE for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

17. The entity incurred the following in exploring a natural resources on January 1,2021Acquisition cost of the land P10,000,000Development cost 5,000,000Exploration cost 6,000,000Purchase of equipment 3,000,000The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources. On 2021 the entity extracted 1,500,000 tons of natural gas. How much is the depletion for the year 2021?
Problem 10-9 (Algo) Interest capitalization; specific interest method [LO10-7]On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows:January 1, 2021$1,280,000March 1, 2021720,000June 30, 2021920,000October 1, 2021720,000January 31, 2022288,000April 30, 2022621,000August 31, 2022918,000 On January 1, 2021, the company obtained a $3,200,000 construction loan with a 15% interest rate. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with interest rates of 11% and 13%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Required:1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific…
Week 8Gem Limited commences operations on 1 January 2019. During 2019 Gem Limited explores threeareas and incurs the following costs:Exploration and Evaluation expenditure ($)Desirable 25,000,000Undesirable 20,000,000Neutral 28,000,000In 2020 oil is discovered at Desirable Site. Undesirable Site is abandoned. Neutral Site has not yet reacha stage that permits a reasonable assessment at the existence or otherwise of economicallyrecoverable reserves, and active and significant operations in the area of interest are continuing. Inrelation to the exploration and evaluation expenditures incurred at Desirable Site and Neutral Site, 70percent of the expenditures related to property, plant and equipment, and the balance relates tointangible assets.In 2020, development costs of $48,000,000 are incurred at Desirable Site (to be written off on aproduction basis). $32,000,000 of this expenditure relates to property, plant and equipment, and thebalance relates to intangible assets. The development…
#9 YOO-YOO Corporation has the following investment which was held throughout 2021–2022: Fair Value Cost 12/31/21 12/31/22 Equity investment $836000 $1128000 $1060000 What amount of gain or loss would YOO-YOO Corporation report in its income statement for the year ended December 31, 2022, related to its investment, if the fair value method of accounting was used? $292000 gain. $68000 loss. $68000 gain. $224000 gain.
P10.5 (LO 2, 3, 5), AP At December 31, 2022, Grand Company reported the following as plant assets. Land $4,000,000Buildings $28,500,000 Less: Accumulated depreciation—buildings 12,100,000 16,400,000Equipment 48,000,000 Less: Accumulated depreciation—equipment 5,000,000 43,000,000Total plant assets $63,400,000During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000.May 1 Sold equipment that cost $750,000 when purchased on January 1, 2019. The equipment was sold for $450,000.June 1 Sold land purchased on June 1, 2013 for $1,500,000. The land cost $400,000.July 1 Purchased equipment for $2,500,000.Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 2013.
30- The cost of the 2020 model "Passat Impression 1.5 TSI ACT 150 PS 7-speed DSG" vehicle, acquired on 17.08.2020 to be used in management activities, is 300.000 TL. What is the amount of depreciation to be allocated in the last year according to the prorated depreciation method for this vehicle with an economic life of 10 years? a) 30.000 TL B) 47.500 TL NS) 17.500 TL D) 60.000 TL TO) 12.500 TL
9. The entity incurred the following in exploring a natural resources on January 1,2021Acquisition cost of the land P10,000,000Development cost 5,000,000Exploration cost 6,000,000Purchase of equipment 3,000,000The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources. On 2021 the entity extracted 1,500,000 tons of natural gas. How much is the depreciation expense for the year?Group of answer choices500,0001,500,000600,000900,000
1.How much is the carrying amount of property, plant and equipment as of December 31, 2020?a. P435,160 c. P763,440b. P729,840 d. P860,400
Problem 3Spaces Company was engaged in the rock and gravel business. The following transactions relate to the acquisition anddevelopment of an extensive gravel pit.2019Cost of acquisition and development P960,000Estimated output 2,400,000 tonsProduction 1,000,000 tons2020Additional development cost P490,000Production 600,000 tons2021Additional development cost P500,000New estimate of remaining output 2,500,000 tonsProduction 700,000 tonsRequired:Prepare the journal entries for 2019, 2020 and 2021.
#27 ISABELA Company has the following equipment acquisitions during the year 2020: April 1, 2020 – Cost of P3,200,000, salvage value of P200,000 and useful life of four years. June 30, 2020 – Cost of P1,350,000, salvage value of P150,000 and useful life of six years October 1, 2020 – Cost of P3,000,000, salvage value of zero and useful life of five years. What is the amount of accumulated depreciation as of December 31, 2021?
PROBLEM 38Barcelona Company owns the following properties on December 31, 2020:a. Land intended for sale - P1,000,000b. Building, in the process of construction for rentals - 3,000,000c. Equipment for lease under operating lease - 500,000d. Land held for undetermined use - 2,500,000e. Building intended for leased out under finance lease - 2,800,000f. Land held for future factory site - 1,200,000g. Building use for rentals. A small part of the buildingis used as a satellite administrative office - 4,000,000h. Hotel building on which Barcelona Company providesmonthly maintenance services - 3,500,000 Requirements:1. How do you classify each of the items mentioned above?2. Compute the investment property on December 31, 2020.
Problem # 1 (30): Given: On Sep 1, 2017 General Assembly (GA) purchased for $980,000 an ANSONIA 7300 wide-corridor stacking modulator with the expectation that its economic life would be exhausted at 2024 12 31 and that the unit’s salvage value would be $320,000. On 2020 11 01 GA exchanged the equipment for a 4-year, zero-coupon note with a face value of $900,000. GA recognized a loss of $16,100 on the transaction. GA uses SLN for depreciation and prorating for partial periods. Required: Book the 12/31/2020 interest accrual for the note.