During April 2021, Hawthorne Exploration and Production Company sold 25,000 Mcf of gaswith a heat content of 1.061 Btu. The selling price of the gas was $2.78/MMBtu. What is thevalue of the gas sale?ed States)FocusCalendar

To calculate the value of the gas sale, you can follow these steps:1. Convert the volume of gas sold…

Answered: During April 2021, Hawthorne…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

See similar textbooks

Similar questions

Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar Company as of December 31, 2020, are as follows: Cost to be amortized 37,500,000 Production during 2020 Oil 19,000,000 bbl Gas 18,000,000 Mcf Proved reserves. 31/12/20 Oil 14,000,000 bbl 32,000,000 Mcf Gas Selling price at 31/12/20 Oil 120 bbl Gas 20 Mcf Average selling.price duting 2020 Oil 110 bbl Gas 12 Mcf Compute the DD&A based on equivalent energy units for 2020. Show ALL workings. %24 %24
Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar Company as of December 31, 2020, are as follows: Cost to be amortized 37,500,000 Production during 2020 Oil 19,000,000 bbl 18,000,000 Mct Gas Proved reserves, 31/12/20 Oil Gas 14,000,000 32,000,000 Mcf bbl Selling price at 31/12/20 Oil 120 bbl 20 Mct Gas Average selling price during 2020 Oil 110 bbl 12 Mct Gas Compute the DD&A based on unit-of-revenue for 2020. Show ALL workings.
8. How much is the Gross Profit/Loss Realized in 2018? * Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project 2017 2018 2019 Costs inenered to dnte Estimsted cost to complete Progess Billings to dnte Cash Collectiona for the year 2160,000 4,500,000 7,520,000 6840,000 5,500,000 1,690, 000 2,304,000 4,320,000 7,680,000 1,728.000 3,240,000 5,760,000 9. How much is the Gross Profit/Loss Realized in 2019? * Xurpas Homes entered into a construction agreement in 2018 for the construction of condominium buildings. The original contract price was P20,000,000 but a change order was issued in 2019 that increases the price by P2,000,000. The percentage of completion method is used by the company in recognizing revenue. The following are information regarding the company. 2018 10,200,000 10,200,000 9,800,000 8,760,000…
An oil and gas company considers five sizes of pipe for a new pipeline. The costs for each size are provided below. Cash flow item Initial investment ($) Annual operating & maintenance cost (AOC) ($) Salvage value ($) Annual income ($) Lifetime, years 140 a) Payback period b) Rate of return (ROR) 3200 600 1000 1000 10 160 4000 950 1250 1500 10 Pipe size, mm c) Discounted profit to investment ratio (DPI) d) Annual worth criterion (AW) 200 5500 1000 1450 2000 10 240 6000 1150 700 2250 20 300 7500 1200 700 3250 If all pipes will last over the provided lifetimes and the company's minimum attractive rate of return (MARR) is 10%, which size of pipe would you choose according to the: 20
Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2022. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?
Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liability
1. Sun City Ltd commences construction of a multi purpose water park on 1 July 2022 for Pretoria Ltd. Sun City Ltd signs a fixed-price contract for total revenues of $50 million. The project is expected to be completed by the end of 2025 and Pretoria Ltd controls the asset throughout the period of construction. The expected cost as at the commencement of construction is $38 million. The estimated costs of a construction project might change throughout the project – in this example, they do change. The following data relates to the project (the financial years end on 30 June): Particulars 2023($m) 2024 ($m) 2025($m) Costs for the year 10 18 12 Costs incurred to date 10 28 40 Estimated costs to complete 28 12 - Progress billings during the year 12 20 18 Cash collected during the year 11 19 20 Prepare the journal entries for the 2023 financial year, assuming that the measure of progress on the contract cannot be reliably…
Louisiana Oil Company (LOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels of oil. Oil production is expected to be 10,000 barrels in year 1, 30,000 barrels in year 2, and 10,000 barrels in year 3. LOC expects to begin selling barrels from its oil inventory in year 2. Required: Assuming these estimates are accurate, determine the book value of oil reserves at the end of year 1.
Week 8Gem Limited commences operations on 1 January 2019. During 2019 Gem Limited explores threeareas and incurs the following costs:Exploration and Evaluation expenditure ($)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…
A company buys a Platform for $800,000 on January 1, 2019. The e of the rig is 10 years and the expected cost to domande the platform at the end of 10 years is $200,000 (present value at 10% is $77,110) 10% is an appropriate interest rate for this company What journal entry related to endronmental abilly should be recorded on January 1, 2019, as a result of these events? OA Debit Environmental Expense for $200,000 and credit Environmental Liability for $200,000 OB. Debit Environmental Loss for $200,000 and credit Environmental Liability for $200,000. OC. Debit Platform for $200,000 and credit Environmental Liability for $200,000 OD. Debit Platform for $77,110 and credit Environmental Liability for $77,110
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
The Bellview Corporation, which sells a single commodity, show the following operating results for a 3-year period: 2018 2019 2020 Р6,000,000 4,080,000 P1,920,000 1,400,000 P520,000 Р6,200,000 4,216,000 P1,984,000 1,500,000 P484,000 Sales P4,500,000 2,925,000 P1,575,000 1,200,000 P375,000 Cost of Sales Gross Profit Operating Expenses Net Income The selling prices of the commodity sold were as follows: in 2018, P22.50%3; in 2019, P24.00; and in 2020, P25.00. REQUIRED: 1. Prepare a summary of the detailed changes in gross profit for 2019 and 2020 as compared with the year immediately preceding in terms of volume changes and price changes for both sales and costs. CS Smad atth Camnnor

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS

During April 2021, Hawthorne Exploration and Production Company sold 25,000 Mcf of gas with a heat content of 1.061 Btu. The selling price of the gas was $2.78/MMBtu. What is the value of the gas sale? ed States) Focus Calendar