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:

1. Assuming Big Oil charges 100% to their own accounts then allocates on a monthly basis
2. Assuming Big Oil allocates at the time of receipt.