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

تمرين 3

Foundation Oil Company owns a working interest in the Carpenter Lease in Texas. The
lease is burdened with a 3/16 royalty interest. During February, a total of 3,000 barrels
of oil is sold at $66/bbl to a refinery owned 100% by Foundation Oil. Assume the
severance tax rate is 5% in Texas.
REqUIRED: Prepare entries for the producer and the refinery purchaser.