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OIL LEASE A A OIL LEASE B 5 OIL LEASE C OIL SEPARATOR 11,000 MCF 13,000 MCF OIL SEPARATOR 17,000 MCF OIL SEPARATOR 25,000 MCF OIL LEASE D CONDENSATE 650 BARRELS CONDENSATE STORAGE TANK 22,000 MCF LTX UNIT OIL LEASE E 風 OIL LEASE F 28.000 MCF FLASH GAS METER NO. 2 2,000 MCF METER NO. 1 40,500 MCF METER NO 4 70,500 MCF 60 COMPRESSOR METER NO. 3 40,800 MCF 다 METER NO. 5 110,000 MCF SALES Allocate on lease fuel back to the well heads. Allocate gas sales back to the well heads. Based on the volumetric allocation of natural gas, assume the following: The Shepherd Field is jointly owned by Tyler Company (60% WI), which acts as field operator, and Our Oil Company (40% WI). There is a 1/8 royalty, which is shared proportionally by Tyler and Our Oil Company. Gas price for the month is $4.50/MMBtu. Assume production taxes were 5%. Based on gas analysis the heating content is 1.03 Btu. What is the value of gas sales? What is the amount of gross revenue Tyler Oil Company & Our Oil Company should record? What is the gross amount should Tyler Oil Company & Our Oil Company record for their proportionate share of royalty and severance tax? What amount of gross revenue, royalty, severance taxes and net revenue should Tyler Company record for each lease (A-B-C-D-E-F)? MacBook Air

OIL LEASE A A OIL LEASE B 5 OIL LEASE C OIL SEPARATOR 11,000 MCF 13,000 MCF OIL SEPARATOR 17,000 MCF OIL SEPARATOR 25,000 MCF OIL LEASE D CONDENSATE 650 BARRELS CONDENSATE STORAGE TANK 22,000 MCF LTX UNIT OIL LEASE E 風 OIL LEASE F 28.000 MCF FLASH GAS METER NO. 2 2,000 MCF METER NO. 1 40,500 MCF METER NO 4 70,500 MCF 60 COMPRESSOR METER NO. 3 40,800 MCF 다 METER NO. 5 110,000 MCF SALES Allocate on lease fuel back to the well heads. Allocate gas sales back to the well heads. Based on the volumetric allocation of natural gas, assume the following: The Shepherd Field is jointly owned by Tyler Company (60% WI), which acts as field operator, and Our Oil Company (40% WI). There is a 1/8 royalty, which is shared proportionally by Tyler and Our Oil Company. Gas price for the month is $4.50/MMBtu. Assume production taxes were 5%. Based on gas analysis the heating content is 1.03 Btu. What is the value of gas sales? What is the amount of gross revenue Tyler Oil Company & Our Oil Company should record? What is the gross amount should Tyler Oil Company & Our Oil Company record for their proportionate share of royalty and severance tax? What amount of gross revenue, royalty, severance taxes and net revenue should Tyler Company record for each lease (A-B-C-D-E-F)? MacBook Air

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 5C: Initial Direct Costs Efland Company leases equipment to Orange Company. Efland incurred the...
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OIL LEASE A A OIL LEASE B 5 OIL LEASE C OIL SEPARATOR 11,000 MCF 13,000 MCF OIL SEPARATOR 17,000 MCF OIL SEPARATOR 25,000 MCF OIL LEASE D CONDENSATE 650 BARRELS CONDENSATE STORAGE TANK 22,000 MCF LTX UNIT OIL LEASE E 風 OIL LEASE F 28.000 MCF FLASH GAS METER NO. 2 2,000 MCF METER NO. 1 40,500 MCF METER NO 4 70,500 MCF 60 COMPRESSOR METER NO. 3 40,800 MCF 다 METER NO. 5 110,000 MCF SALES Allocate on lease fuel back to the well heads. Allocate gas sales back to the well heads. Based on the volumetric allocation of natural gas, assume the following: The Shepherd Field is jointly owned by Tyler Company (60% WI), which acts as field operator, and Our Oil Company (40% WI). There is a 1/8 royalty, which is shared proportionally by Tyler and Our Oil Company. Gas price for the month is $4.50/MMBtu. Assume production taxes were 5%. Based on gas analysis the heating content is 1.03 Btu. What is the value of gas sales? What is the amount of gross revenue Tyler Oil Company & Our Oil Company should record? What is the gross amount should Tyler Oil Company & Our Oil Company record for their proportionate share of royalty and severance tax? What amount of gross revenue, royalty, severance taxes and net revenue should Tyler Company record for each lease (A-B-C-D-E-F)? MacBook Air
Transcribed Image Text:OIL LEASE A A OIL LEASE B 5 OIL LEASE C OIL SEPARATOR 11,000 MCF 13,000 MCF OIL SEPARATOR 17,000 MCF OIL SEPARATOR 25,000 MCF OIL LEASE D CONDENSATE 650 BARRELS CONDENSATE STORAGE TANK 22,000 MCF LTX UNIT OIL LEASE E 風 OIL LEASE F 28.000 MCF FLASH GAS METER NO. 2 2,000 MCF METER NO. 1 40,500 MCF METER NO 4 70,500 MCF 60 COMPRESSOR METER NO. 3 40,800 MCF 다 METER NO. 5 110,000 MCF SALES Allocate on lease fuel back to the well heads. Allocate gas sales back to the well heads. Based on the volumetric allocation of natural gas, assume the following: The Shepherd Field is jointly owned by Tyler Company (60% WI), which acts as field operator, and Our Oil Company (40% WI). There is a 1/8 royalty, which is shared proportionally by Tyler and Our Oil Company. Gas price for the month is $4.50/MMBtu. Assume production taxes were 5%. Based on gas analysis the heating content is 1.03 Btu. What is the value of gas sales? What is the amount of gross revenue Tyler Oil Company & Our Oil Company should record? What is the gross amount should Tyler Oil Company & Our Oil Company record for their proportionate share of royalty and severance tax? What amount of gross revenue, royalty, severance taxes and net revenue should Tyler Company record for each lease (A-B-C-D-E-F)? MacBook Air
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