Longhorn Oil and Gas Corporation operates the Flat Hill Basin. Along with oil, this field produces large quantities of salt water. The salt water is highly corrosive, and as a result, the downhole production equipment is subject to frequent replacement.

During the first half of 2019, Longhorn must replace the tubulars in wells A, B, and C. Wells X, Y, and Z (newly drilled wells) are in the process of being completed.

During April, Longhorn receives a shipment containing 500 joints of production tubing. The invoice totals $500,000 plus $3,000 for transportation and hauling.

The production tubing is installed in the following wells:

REQUIRED: Record the purchase and installation of the production tubing.

Transcribed Image Text:

Well A B C X Y Z Production Tubing (Joints) 100 50 75 100 125 50