Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

تمرين 15

Prospect Oil Company sold a total of 1,000 Mcf of gas at $9.00/Mcf. The lease
provides a 1/5 RI. The working interest owner receives 100% of the revenues (net of 5%
severance tax) and then distributes the amount due to the royalty interest owner.
REqUIRED: Give the entry by Prospect to record the sale of the gas.