Cameron Oil Company operates Leases X and Y. Cameron Oil transfers 50 barrels of oil from Lease
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Cameron Oil Company operates Leases X and Y. Cameron Oil transfers 50 barrels of oil from Lease X to Lease Y to be used as fuel on Lease Y. The current spot oil price is \($22/bbl\) and the severance tax rate is 5%. Cameron owns 100% working interests in Lease X and Lease Y. Lease X has a 1/8 royalty interest and Lease Y a 3/16 royalty interest.
Prepare an entry for the transfer of the oil.
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Related Book For 
Fundamentals Of Oil And Gas Accounting
ISBN: 9780878147939
4th Edition
Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson
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