Prospect Oil Company sold a total of 1,000 Mcf of gas at $9.00/Mcf. The lease provides a

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Prospect Oil Company sold a total of 1,000 Mcf of gas at $9.00/Mcf. The lease provides a 1/5 RI. The working interest owner receives 100% of the revenues (net of 5%

severance tax) and then distributes the amount due to the royalty interest owner.

REQUIRED: Give the entry by Prospect to record the sale of the gas.

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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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Prospect Oil Company sold a total of 1,000 Mcf of gas at $9.00/Mcf. The lease provides a

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Fundamentals Of Oil And Gas Accounting

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