McGavin Oil Company obtained 200 Mcf of gas from Lease A and used the gas for gas

Question:

McGavin Oil Company obtained 200 Mcf of gas from Lease A and used the gas for gas injection on Lease B. The gas was valued at $12/Mcf. Assume production taxes are 5% and the royalty on Lease A is a 1/6 RI.

REQUIRED:

a. Give the entry necessary to record the transfer of the gas.

b. Give the entry assuming 100% of the gas is recovered and sold at $12/Mcf.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

See More Books

Question Posted: Mar 08, 2024 10:01 AM

See More Questions

Make journal entries for the following and assume transactions up to November 30 have been correctly recorded. On February 3, 2017, FCM signed an agreement with Deion Sanders to provide media...
A partial amortization schedule for a 10-year note payable issued on January 1, 2016, is shown below. a. Using the financial statement model below, record the appropriate amounts for the following...
Here is a forecast of sales by National Bromide for the first 4 months of 2019 (figures in thousands of dollars): Month: 2 4 Cash sales 18 27 21 17 Sales on credit 115 135 105 85 On average, 60% of...
In Exercises 7192, find and simplify the difference quotient f(x +h)-f(x) h -, h = 0
Prepare the income statement for Damon Design Studio for the year ending December 31, 2018. The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31,...
Answer true or false to the following statements: a. Microsoft's SourceSafe is an example of a software-based librarian. b. In a typical IT shop, analysts spend at most about 20 percent of their time...
How long have you been working in your current position?
PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during the year: (a) Issued 25,000 shares of $1 par common stock for $25,000 cash. (b) Issued 20,000...
Even method: 1- Algorithm Compare between recursion and iteration 2- Memory representation (Ex: EVEV (0,10)) recursion iteration
Wildcat Oil Company sold or used the gas produced on Lease A during March as follows: a. 600 Mcf used as fuel to operate lease equipment b. 800 Mcf sold to R Company at $12/Mcf Assume a 1/7 RI and a...
During July, Session Oil Company sold 6,000 Mcf of gas at $10.00/Mcf. The lease provides a 1/6 RI. The working interest owner receives 100% of the revenues (net of 5% severance tax) and then...
Suppose that EBV decides to consider six possible structures for the Series A stock in Exercise 8.2: Structure I: The original structure considered in Exercise 8.2: 6M shares of CP. Structure II: 6M...
Assume you purchased a vehicle for $8,000. You kept that vehicle for three years and then sold it. While you owned the vehicle, you paid a total of $2,000 in taxes, insurance, maintenance, and other...
9.5.2. Binary Tree Increment By One Exercise X295: Binary Tree Increment By One Exercise Write a recursive function that increments by one the value for every node in the binary tree pointed at by...
Dave is analysing a work process and realizes that there are around 68,000 defects per million opportunities. What level of is the process operating at?
What does the following functions do? a. int mystry (struct node* head) { int count = 0; } b. struct node* current = head; while (current != NULL) { count++; current = current->next } return (count);...
Identify and describe a process that you see (either at home or at work or out in the world) that could benefit from process improvement. Discuss the potential for improvement, the benefits that...
Observing Planets beyond Our Solar System NASA is considering a project called Planet Imager that would give astronomers the ability to see details on planets orbiting other stars. Using the same...
For the following exercises, write the first four terms of the sequence. a n = 2 n 2
List three products that are sold in purely competitive markets and three that are sold in monopolistically competitive markets. Do any of these products have anything in common? Can any...
Cite a local example of an oligopoly, explaining why it is an oligopoly.
Distinguish between the following pairs of items that appear on operating statements: (a) Gross sales and net sales, (b) Purchases at billed cost and purchases at net cost.
Prepare Hearts Statement of CFO: Compraram 1 NI Q1 12/31/2016 12/31/2017 2 Depr. Exp Truck Q2 Assets: Cash 357,000 1,382,800 Depr. Exp - Equip AR 100,000 92,000 Amort. Exp Intang Q4 Prepaid Insurance...
Requirement 1. Journalize each transaction including explanations. (Record debits first, then credits. Select the explanations on the last line o Apr. 2: Borrowed $49,000 from the bank and signed a...
Allen Company sells flags with team logos. Allen Company has fixed costs of $770,000 per year plus variable costs of $11.00 per flag. Each flag sells for $22.00. Read the requirements. Requirement 1....

McGavin Oil Company obtained 200 Mcf of gas from Lease A and used the gas for gas

Question:

Step by Step Answer:

Fundamentals Of Oil And Gas Accounting

Students also viewed these Business questions