Jackson Oil Company used 100 Mcf of gas obtained from Lease A and valued at $8.40/ Mcf

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Jackson Oil Company used 100 Mcf of gas obtained from Lease A and valued at $8.40/

Mcf for gas injection on Lease B. Assume production taxes are 5% and the royalty on Lease A is a 1/6 RI.

a. Give the entry necessary to record the transfer of the gas.

b. Give the entry assuming 100% of the gas is recovered and sold at $8.40/Mcf.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593701376

5th Edition

Authors: Charlotte J. Wright, Rebecca A. Gallun

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Question Posted: May 31, 2024 10:15 AM

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Jackson Oil Company used 100 Mcf of gas obtained from Lease A and valued at $8.40/ Mcf

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Fundamentals Of Oil And Gas Accounting

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