Well

$24-$Hr Test $($bbl$)$

Days Produced

Total Production Sold

Liberty Well $1$

$20$

$30$

$2,900$ measured at point of delivery

Freedom Well A$-1$

$35$

$26$

Dyson Powell

$50$

$24$

Assume the data above for the following wells commingled production in Tank Battery on the Premise Lease located in Fayette County, Texas. Cameron Oil Company $(70\%$ WI$)$ and Garcia Company $(30\%$ WI$)$ own a joint working interest in the Dowling Field. The expected selling price was $$60/$bbl$.$ The royalty interest is $1/5$ and the severance tax rate is $10\%.$

Cameron Oil Company assumes the responsibility of distributing severance taxes and royalty. Prepare the revenue entries for Cameron Oil Company and Garcia Company.

What amount of gross revenue, royalty, severance taxes and net revenue should Cameron Oil Company record for each well $($Liberty Well $1,$ Freedom Well A$-1$ and Dyson Powell$)?$