Wildcat Oil Company sold or used the gas produced on Lease A during March as follows:

a. 600 Mcf used as fuel to operate lease equipment

b. 800 Mcf sold to R Company at $12/Mcf Assume a 1/7 RI and a production tax of 5%, and assume that the lease agreement has a free fuel clause, but production taxes still have to be paid according to state law. The selling price of gas is currently $12/Mcf.

REQUIRED: Give the entries necessary to record the gas sold or used, assuming the operator distributes taxes and royalty.