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

Exercise 1

Core Petroleum owns 60%, Dwight Corporation owns 30%, and Webb Company owns
10% of the working interest property number 2008. Core Petroleum is the operator and
bills Dwight and Webb monthly for their portion of costs incurred. During May 2016,
Core incurred costs as follows: Other Costs:
Employee benefits-21% of salaries and wages
Transportation of material and employees, 1,500 miles at $0.25/mile
Overhead, 22% of all costs listed above
REqUIRED: Give the entries to record and distribute the costs, assuming regular
accounts are used.