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Gemini Oil Company owns a 1 0 0 % working interest in a lease on which there is a 1 8 royalty interest. During one
Gemini Oil Company owns a working interest in a lease on which there is a royalty interest. During one month, Gemini Oil produced and sold MCF of gas at $mbtu to Tawhoe Gas Plant. Based on gas analysis the btu factor is Assume production taxes are
A Calculate the revenue distribution Gross revenue, severane tax and net of severance tax for working interest and royalty owners.
B Prepare the journal entry assuming the Gemini Oil Compnay is responsible for distributing royalty and production taxes.
C Prepare the journal entry assuming Tawhoe Gas Plant is responsible for distributing royalty and severance tax.
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