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1) What are the three most common forms of joint interest operations?

2) What does the term Joint Venture usually refer to?

3) What is the distinction between a Limited Partnership and a Master Limited Partnership?

4) What is the proportionate consolidation method of accounting?

5) What is pooling? Why is it common? What incentive does an owner of a small lease have to pool their lease?

6) What is unitization? What are the common reasons for unitization?

7) What elements are contained in a joint operating agreement (JOA)?

8) Who generally develops model Accounting Procedure Joint Operations exhibits?

9) What are the 5 sections of the Accounting Procedure exhibit?

10) Big Oil has 40% of the working interest in a Joint venture where Manic Oil owns 35% and Fortnight Oil owns 25 %. Big Oil is the operator. Big Oil receives a bill for $540,000 from Super Service the drilling contractor on the Craggy Lease 3. Give the journal entries for Big Oil to record the bill:

10-a) Assuming Big Oil charges 100% to their own accounts then allocates on a monthly basis

10-b) Assuming Big Oil allocates at the time of receipt.

11) Bulldog Oil, the operator of Lease A purchased casing with a list price of $160,000 for a joint interest property in which it has a 40% working interest. The casing is to be used in a workover. The vendor gives a discount of 10% of list price and has terms of 2/10, n/30. Loading, hauling and unloading costs amounted to $9,000. Prepare the entry to record the purchase.

12) Longhorn Oil Corporation transferred an item of equipment from its wholly owned warehouse to a jointly owned lease in which it has a 70% working interest. The equipment was carried on Longhorns books at $85,000. Give the entry to record the transfer, ignoring transportation charges.

13) Grover Petroleum owns a piece of equipment originally costing $60,000 that is currently being used in Lease A. Grover Petroleum owns a 40% working interest in Lease A and is the operator. The company plans to use the equipment in a lease wholly owned by Grover Petroleum. The equipment is transferred to Grovers warehouse. Record the entry for the transfer.

14) Brown Oil Company is the operator of Lease A and Lease B and has a 60% working interest in each lease. The original cost of the equipment is $30,000. Prepare the entry to record the transfer.

15) Who generally initiates a Joint Interest Audit?

16) What is a ballot letter?

1. What are the three most common forms of joint interest operations? 2. What does the term "Joint Venture" usually refer to? 3. What is the distinction between a Limited Partnership and a Master Limited Partnership? 4. What is the proportionate consolidation method of accounting? 5. What is pooling? Why is it common? What incentive does an owner of a small lease have to pool their lease? 6. What is unitization? What are the common reasons for unitization? 7. What elements are contained in a joint operating agreement (JOA)? 8. Who generally develops model Accounting Procedure Joint Operations exhibits? 9. What are the 5 sections of the Accounting Procedure exhibit? 10. Big Oil has 40% of the working interest in a Joint venture where Manic Oll owns 35% and Fortnight Oil owns 25%. Big Oil is the operator. Big Oil receives a bill for $540,000 from Super Service the drilling contractor on the Craggy Lease 3 . Give the journal entries for Big Oil to record the bill: a. Assuming Big Oil charges 100% to their own accounts then allocates on a monthly basis b. Assuming Big Oil allocates at the time of receipt. 11. Bulldog Oil, the operator of Lease A purchased casing with a list price of $160,000 for a joint interest property in which it has a 40% working interest. The casing is to be used in a workover. The vendor gives a discount of 10% of list price and has terms of 2/10,n/30. Loading, hauling and unloading costs amounted to $9,000. Prepare the entry to record the purchase. 12. Longhorn Oil Corporation transferred an item of equipment from its wholly owned warehouse to a jointly owned lease in which it has a 70% working interest. The equipment was carried on Longhorn's books at $85,000. Give the entry to record the transfer, ignoring transportation charges. 13. Grover Petroleum owns a piece of equipment originally costing $60,000 that is currently being used in Lease A. Grover Petroleum owns a 40% working interest in Lease A and is the operator. The company plans to use the equipment in a lease wholly owned by Grover Petroleum. The equipment is transferred to Grover's warehouse. Record the entry for the transfer. 14. Brown Oil Company is the operator of Lease A and Lease B and has a 60% working interest in each lease. The original cost of the equipment is $30,000. Prepare the entry to record the transfer. 15. Who generally initiates a Joint Interest Audit? 16. What is a ballot letter? 1. What are the three most common forms of joint interest operations? 2. What does the term "Joint Venture" usually refer to? 3. What is the distinction between a Limited Partnership and a Master Limited Partnership? 4. What is the proportionate consolidation method of accounting? 5. What is pooling? Why is it common? What incentive does an owner of a small lease have to pool their lease? 6. What is unitization? What are the common reasons for unitization? 7. What elements are contained in a joint operating agreement (JOA)? 8. Who generally develops model Accounting Procedure Joint Operations exhibits? 9. What are the 5 sections of the Accounting Procedure exhibit? 10. Big Oil has 40% of the working interest in a Joint venture where Manic Oll owns 35% and Fortnight Oil owns 25%. Big Oil is the operator. Big Oil receives a bill for $540,000 from Super Service the drilling contractor on the Craggy Lease 3 . Give the journal entries for Big Oil to record the bill: a. Assuming Big Oil charges 100% to their own accounts then allocates on a monthly basis b. Assuming Big Oil allocates at the time of receipt. 11. Bulldog Oil, the operator of Lease A purchased casing with a list price of $160,000 for a joint interest property in which it has a 40% working interest. The casing is to be used in a workover. The vendor gives a discount of 10% of list price and has terms of 2/10,n/30. Loading, hauling and unloading costs amounted to $9,000. Prepare the entry to record the purchase. 12. Longhorn Oil Corporation transferred an item of equipment from its wholly owned warehouse to a jointly owned lease in which it has a 70% working interest. The equipment was carried on Longhorn's books at $85,000. Give the entry to record the transfer, ignoring transportation charges. 13. Grover Petroleum owns a piece of equipment originally costing $60,000 that is currently being used in Lease A. Grover Petroleum owns a 40% working interest in Lease A and is the operator. The company plans to use the equipment in a lease wholly owned by Grover Petroleum. The equipment is transferred to Grover's warehouse. Record the entry for the transfer. 14. Brown Oil Company is the operator of Lease A and Lease B and has a 60% working interest in each lease. The original cost of the equipment is $30,000. Prepare the entry to record the transfer. 15. Who generally initiates a Joint Interest Audit? 16. What is a ballot letter