Cameron Oil Company produced a total of 2,000 barrels of oil in June 2012. The expected selling price was $60/bbl. The purchaser pays the severance taxes and the royalty interest owner and remits the remainder to Cameron Oil. The royalty interest is 1/5, and the severance tax rate is 10%.

a. Prepare the entry for Cameron Oil Company and the RI owner, assuming the oil was sold in June 2012 at the expected selling price.

b. Prepare entries for Cameron Oil Company, assuming that revenue is recognized as produced based on the expected selling price and that the oil produced in June was sold in July 2012 for $66/bbl.