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

تمرين 12

Joyner Oil Company sells 10,000 (gross) Mcf of gas at $9/Mcf. The lease provides for a
1/6 RI, and the working interest owner has distributed an ORI of 1/10. The severance
tax rate is 7%. Record the entries for the royalty interest owner, ORI owner, and
working interest owner, assuming:
a. The purchaser assumes responsibility for distributing taxes and royalty income.
b. Joyner Oil assumes the responsibility for distributing taxes and royalty income.