Macon Co Acquired Drilling Rights for $7,500,000

question 94

Essay

Macon Co. acquired drilling rights for $7,500,000. The oil deposit is estimated at 37,500,000 gallons. During the current year, 3,000,000 gallons were drilled. Journalize the adjusting entry at December 31, 2011 to recognize the depletion expense.
Journal

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Definitions:

Job Control Unionism

A labor movement strategy that focuses on managing aspects of employment, such as hiring practices, work assignments, and promotions, through union influence.

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity, developed by Frederick Taylor.

Self-Directed Work Teams

Groups of employees who are given the autonomy to manage themselves and their work, often including planning, scheduling, and execution of tasks.

Auto Industry

A global sector that designs, manufactures, markets, and sells motor vehicles.