Ramsey Company has a 100% WI in some property in Texas. The property is burdened with a 1/8 royalty. Ramsey produces and sells a total of 130,000 Mcf of gas from the property during July. Of the 130,000 Mcf, 50,000 Mcf of gas is sold to a pipeline for \($2.00/Mcf.\) Ramsey sells the remaining 80,000 Mcf of gas to the local gas company for \($2.00/Mcf.\) The 80,000 Mcf of gas, which must be transported to the local gas company, will be transported by Isaac Pipeline Company. Transportation charges are \($0.26\) per Mcf.

REQUIRED: 

Ignore severance taxes. Prepare entries to record the sales by Ramsey Company.