Joyner Oil Company sells 10,000 Mcf of gas at ($1.50/Mcf.) The lease provides for a 1/6 RI,

Question:

Joyner Oil Company sells 10,000 Mcf of gas at $$1.50/Mcf.$ The lease provides for a 1/6 RI, and the WI owner has distributed an ORI of 1/10. The severance tax rate is 7%.

Record the entries for the RI owner, ORI owner, and WI owner, assuming:

a. The purchaser assumes responsibility for distributing taxes and royalty income.

b. Joyner Oil assumes the responsibility for distributing taxes and royalty income.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (2 reviews)

Answered By

Ali Khawaja

my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce

4.00+ 1+ Reviews 10+ Question Solved

Related Book For book-img-for-question