A lease operated by Rocky Oil Company produces a total of 3,000 barrels of oil in June.
Question:
A lease operated by Rocky Oil Company produces a total of 3,000 barrels of oil in June. The oil is sold in October. The posted field price and the actual selling price is $100/bbl. The severance tax rate is 5%. The purchaser of the oil will pay the severance tax to the state and also will pay the royalty interest owner. The royalty interest is 1/5.
REQUIRED: Prepare entries assuming Rocky Oil recognizes revenue
(a) at time of sale, and
(b) at time of production based on the posted field price.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Hemstone Ouma
"Hi there! My name is Hemstone Ouma and I am a computer scientist with a strong background in hands-on experience skills such as programming, sofware development and testing to name just a few. I have a degree in computer science from Dedan Kimathi University of Technology and a Masters degree from the University of Nairobi in Business Education. I have spent the past 6 years working in the field, gaining a wide range of skills and knowledge. In my current role as a programmer, I have had the opportunity to work on a variety of projects and have developed a strong understanding of several programming languages such as python, java, C++, C# and Javascript.
In addition to my professional experience, I also have a passion for teaching and helping others to learn. I have experience as a tutor, both in a formal setting and on a one-on-one basis, and have a proven track record of helping students to succeed. I believe that with the right guidance and support, anyone can learn and excel in computer science.
I am excited to bring my skills and experience to a new opportunity and am always looking for ways to make an impact and grow as a professional. I am confident that my hands-on experience as a computer scientist and tutor make me a strong candidate for any role and I am excited to see where my career will take me next.
8+ Reviews
22+ Question Solved
Related Book For 
Question Posted:
