An Oil Well Cost $1,782,500 and Is Calculated to Hold

question 50

Multiple Choice

An oil well cost $1,782,500 and is calculated to hold 150,000 barrels of oil.There is no residual value.Which journal entry is needed to record the expense for the extraction of 40,000 barrels of oil during the year? All 40,000 barrels were sold during the year.(Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold - Oil Reserve } & 475,200 & \\
• \hline \text { Accumulated Depletion - Oil Reserve } & & 475,200 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Depletion Expense - Oil Reserve } & 475,200 & \\
• \hline \text { Oil Revenue } & & 475,200 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Depletion Expense - Oil Reserve } & 475,200 & \\
• \hline \text { Accumulated Depletion - Oil Reserve } & & 475,200 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Oil Reserve Inventory } & 475,200 & \\
• \hline \text { Accumulated Depletion - Oil Reserve } & & 475,200 \\
• \hline
• \end{array}\]

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Definitions:

Informed Consent

The process of providing comprehensive information about a medical procedure or experiment to a participant, allowing them to decide knowingly whether to participate.

Signed Consent Form

A legal document indicating that a person has been informed about and agrees to a procedure or treatment plan.

Surgical Consent

Formal permission granted by a patient or their representative for a surgical procedure, after being informed of its risks, benefits, and alternatives.

Preoperative Phase

The period before surgery during which preparations and assessments are made to ready the patient for the operation.