Complete the accompanying run ticket and give the entry to record the sale of the oil at $75/bbl assuming a severance tax rate of 5% and a 1/5 RI. The operator is Montgomery Oil Company and the run ticket is number 55. Use the tables given in the chapter. The tank is manufactured by Tank-Co and its number is 1, the observed temperature is 73ºF, and the observed API gravity is 33º. The first tank measurement at the beginning of the run is 14'4" at a temperature of 77ºF, and the second tank measurement at the end of the run is 1'6" at 78ºF. The BS&W content is 0.002. The date of the sale was May 31, 2017.

Transcribed Image Text:

TICKET NUMBER. ACCOUNT LEASE NUMBER TANK MANUFACTURER 1ST MEASUREMENT 2ND MEASUREMENT GRA VITY BS &W REMARKS DATE ST 2ND TIME TIME FT INCHES TEMP OBSERVED TEMP TRUE PRICE GAUGER RUN TICKET A.M. P.M. A.M. P.M. WITNESSED BY: WELL NUMBER WITNESSED BY: TANK ID BBLS TOTAL I 1 I