9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that contained a $3 per acre delay rental clause. Drilling operations were started on June 15, 2005 and completed on October 16, 2005. The well, determined to be dry, was plugged and abandoned. No further drilling operations were started during the primary term. All required delay rentals were paid. Give all entries relating to the delay rental requirement.
9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that contained a $3 per acre delay rental clause. Drilling operations were started on June 15, 2005 and completed on October 16, 2005. The well, determined to be dry, was plugged and abandoned. No further drilling operations were started during the primary term. All required delay rentals were paid. Give all entries relating to the delay rental requirement.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that
contained a $3 per acre delay rental clause. Drilling operations were started on June 15,
2005 and completed on October 16, 2005. The well, determined to be dry, was plugged
and abandoned. No further drilling operations were started during the primary term. All
required delay rentals were paid. Give all entries relating to the delay rental requirement.
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