Well 24-Hr Test (bbl) Days Produced Total Production Sold Liberty Well 1 Freedom Well A-1 20 30 2,900 – measured at point of delivery 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.

Well 24-Hr Test (bbl) Days Produced Total Production Sold Liberty Well 1 Freedom Well A-1 20 30 2,900 – measured at point of delivery 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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