Problem-accounting for natural resources ernest oil inc

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Reference no: EM131819828

Question: Accounting for natural resources Ernest Oil, Inc. has an account titled Oil and Gas Properties. Ernest paid $6,200,000 for oil reserves holding an estimated 400,000 barrels of oil. Assume the company paid $590,000 for additional geological tests of the property and $470,000 to prepare for drilling. During the first year, Ernest removed and sold 72,000 barrels of oil. Record all of Ernest's transactions, including depletion for the first year.

Reference no: EM131819828

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