Alaskan Fuels holds huge reserves of oil assets. Assume that at the end of 2019, Alaskan Fuels cost of oil reserves totaled $80,000,000,000, representing 5,000,000,000 barrels of oil.

1. Suppose Alaskan Fuels removed and sold 700,000,000 barrels of oil during 2020.

Journalize depletion expense for 2020.

Depletion per unit

(Cost `-` Res. Value)`/`Units = Depletion per unit
( `-` )`/`= per unit

Depletion expense

Depletion per unit X Units used
X =

Journal

Date	Description	Debit	Credit
December 31	A/PA/RAccumulated Depletion-OilCashDepletion Expense-OilOilOil expense
December 31	A/PA/RAccumulated Depletion-OilCashDepletion Expense-OilOilOil expense