Complete the acquisition, Oil Company, Inc. spends G&G

Complete the acquisition

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Reference no: EM13918170

In January, E&P Oil Company, Inc. spends G&G exploratory costs of $800,000 before spending $750 per acre to acquire a 640-acre lease, along with legal attorney fees of $2,400, and title and recording fees of $1,000 to complete the acquisition. The property was acquired with the intent to locate and explore oil and gas production. Write the entry and identify the financial statements affected.

Reference no: EM13918170

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Complete the acquisition : Oil Company, Inc. spends G&G exploratory costs of $800,000 before spending $750 per acre to acquire a 640-acre lease, along with legal attorney fees of $2,400, and title and recording fees of $1,000 to complete the acquisition.

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