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

تمرين 21

Big John Oil Company purchased 100 barrels of oil from JD Operator. The gross value
of the oil was $5,000. The severance tax rate was 4%. Give the entry to record revenue
for JD, assuming Big John disbursed the royalty and remitted all taxes, and assuming a
division order as follows: