Oil Company produces a total of 1,000 barrels of oil in July. The posted field price and the actual selling price is $66/bbl. The severance tax rate is 5%. The royalty interest is 15 and
ORI 1/8
Required. Prepare entries for Oil company assuming
a) the purchaser of the oil will pay the severance tax to the state and also will pay the non-working interests
b) Oil company will pay the severance tax to the state and also will pay the non working interests
c) Royalty interest.

Answer rating: 100% (QA)

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