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

تمرين 17

Jackson Oil Company used 100 Mcf of gas obtained from Lease A and valued at $8.40/
Mcf for gas injection on Lease B. Assume production taxes are 5% and the royalty on
Lease A is a 1/6 RI.
a. Give the entry necessary to record the transfer of the gas.
b. Give the entry assuming 100% of the gas is recovered and sold at $8.40/Mcf.