Simms Company owns 70%, Duster Company owns 20%, and Ross Company owns 10% of the working interest property 1004. Assume Simms Company is the operator and incurs the following costs during the month of July 2003, in connection with the property:

REQUIRED: Give the entries to record and distribute the costs, assuming regular accounts are used.

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Salaries and wages, field employees Salaries and wages, first-level field supervisors $ 6,000 2,000 Operator's cost of holiday, vacation, sickness, and disability benefits, 8% of above... 640 Social Security tax, 7.5% of above. 600 Employee benefits, group life insurance 1,920 Material installed on property from Simms' inventory.. 300 Transportation of material and employees 1,200 miles @ $0.25 per mile .... 300 Contract service, reacidizing (workover) 2,500 Purchase and installation of compressor unit 1,500 Repair of Christmas tree 500 Property taxes paid.... 500 Insurance premium paid. 800 Overhead, 2 wells @ $700 per well 1,400