The Fisher Lease is a joint working interest. Garcia Energy owns 70%, Cameron Company owns 20%, and Tampa Oil Company owns 10% of the working interest.

Assume Garcia Energy is the operator and incurs the following costs during the month of July 2019, in connection with the property:

REQUIRED: Give the entries to record and distribute the costs, assuming regular accounts are used.

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Salaries and wages, first-level field supervisors Salaries and wages, field employees... Operator's cost of holiday, vacation, sickness, and disability benefits, $10,000 8,000 8% of above... 1,440 FICA and Medicare taxes, 7.65% of above.. 1,350 Employee benefits, group life insurance. 2,000 Material installed on property from Garcia's inventory 1,500 Transportation of material and employees 2,000 miles @ $0.25/mile 500 Contract service, reacidizing (workover) 5,000 Purchase and installation of compressor unit 4,000 Repair of Christmas tree 1,000 Property taxes paid... 500 Insurance premium paid. Overhead, three wells @ $700/well.. 800 2,100