Mateen Oil and Gas Company provides the following data:201920202021Unproved property acquisitionProved property acquisition35,00055,00081,00060,00050,00070,000G&G450,000430,000475,000Exploratory drilling (including dry hole)318,000473,000535,000Development drilling155,00095,000190,000Extensions and discoveries83,00078,00085,600Equipments60,00055,00085,000Use formula 1 without revision to find the Finding costs per BOE for 20199.2530O 9.2035O 9.20055.2930

Here discuss about the finding cost per BOE which was calculated by using total volume of cost…

Mateen Oil and Gas Company provides the following data: 2019 2020 2021 Unproved property acquisition Proved property acquisition 35,000 55,000 81,000 60,000 50,000 70,000 G&G 450,000 430,000 475,000 Exploratory drilling (including dry hole) Development drilling Extensions and discoveries 318,000 473,000 535,000 155,000 95,000 190,000 83,000 78,000 55,000 85,600 Equipments 60,000 85,000

Mateen Oil and Gas Company provides the following data: 2019 2020 2021 Unproved property acquisition Proved property acquisition 35,000 55,000 81,000 60,000 50,000 70,000 G&G 450,000 430,000 475,000 Exploratory drilling (including dry hole) Development drilling Extensions and discoveries 318,000 473,000 535,000 155,000 95,000 190,000 83,000 78,000 55,000 85,600 Equipments 60,000 85,000

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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2. The ABC Company is involved in the exploration of mineral rights. Its policy is to recognize exploration assets and measure them initially at cost. During 2021 ABC incurs the following expenditure. Exploratory drilling for minerals on site and related activities, P200,000; Roads and infrastructure to access exploration site P350,000, Expenditures relating to the subsequent development of the resources, P340,000. In accordance with IFRS6 Exploration for and evaluation of mineral resources, at what amount should exploration assets be initially recognized in the financial statements of ABC?
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?
During 2020, ABC Company acquired a mineral mine for P1,500,000 of which P200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2020, 1,500,000 units were extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2020? A. P180,000 B. P130,000 C. P156,000 D. P195,000
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
On December 31, 2020, the statement of financial position of It’s a Choice Company showed thefollowing property and equipment after charging depreciation:Building 3,000,000Accumulated depreciation (1,000,000) 2,000,000Equipment 1,200,000Accumulated depreciation (400,000) 800,000The company has adopted the revaluation model for the valuation of property and equipment. This hasresulted in the recognition in prior periods of an asset revaluation surplus for the building of P140,000. Thecompany does not make a transfer to retained earnings in respect of realized revaluation surplus. On December 31, 2020, an independent valuer assessed the fair value of the building to be P1,600,000 andthe equipment to be P900,000. The building and equipment had remaining useful lives of 25 years and 4years, respectively, as of that date.The revaluation surplus as of December 31, 2021 isA.140,000 B. 100,000 C. 75,000 D. Zero
- How much was the investment acquisition cost at July 1, 2020? A.P515,100 B. P510,000 C. P509,400 D. P504,900 - What is the investment carrying amount at December 31, 2020? A. P647,600 B. P550,000 C. P541,350 D. P536,250
During 2020, Prospect Company incurred P4,000,000 in exploration cost for each of the 15 oil wells drilled in 2020. Of the 15 wells drilled, 10 were dry holes. The entity used the successful effort method of accounting. The entity depleted 30% of the oil discovered in 2020. What amount of exploration cost should be reported in the December 31, 2020 statement of financial position? a.42,000,000b.14,000,000c.20,000,000d.6,000,000
1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
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.
The draft balance sheet of Tere Corporation as of December 31, 2019 reported the net property, plant and equipment at P110,000,000. Details of the amount follow: Land at cost P10,000,000Building at cost P50,000,000Less accumulateddepreciation at 12/31/18 (20,000,000) 30,000,000Plant at cost 94,500,000Less accumulateddepreciation at 12/31/18 (24,500,000) 70,000,000 110,000,000The following matters are relevant:• On 30 June 2019, Tere terminated the production of one of its product lines. From this date, the plant used to manufacture the product has been actively marketed at an advertised price of P4.2 million which is considered realistic. Assume that this plant qualified as held for sale in accordance withPFRS 5. It is…
#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?
The following are available from Pinkish Gambino: Machinery Equipment Cost of Acquisition P560,000 P140,000Estimated Salvage Value 60,000 20,000Date of Acquisition January 1, 2020 July 1, 2020Estimated Life 10 years 5 years On October 1, 2023, the above machinery was sold for P400,000 while the equipment could no longer be used on March 31, 2023 and the company received P50,000 from the insurers in full settlement of the claims. How much is the net gain or loss from the disposal of the assets above?a. 3,500 b.23,500 c.24,000 d.27,500