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Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031 Exercise 6
Stephens Oil Company produces a total of 2,000 barrels of oil in June that is sold in
July. The posted field price and the actual selling price is $66/bbl. The severance tax rate
is 5%. The purchaser of the oil will pay the severance tax to the state and also will pay
the royalty interest owner. The royalty interest is 1/8.
REqUIRED: Prepare entries assuming Stephens Oil recognizes revenue
July. The posted field price and the actual selling price is $66/bbl. The severance tax rate
is 5%. The purchaser of the oil will pay the severance tax to the state and also will pay
the royalty interest owner. The royalty interest is 1/8.
REqUIRED: Prepare entries assuming Stephens Oil recognizes revenue
Explanation
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Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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