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Please help Oil Company produces a total of 1,000 barrels of oil in July. The posted field price and the actual selling price is $66/bbl.

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Oil Company produces a total of 1,000 barrels of oil in July. The posted field price and the actual selling price is $66/bbl. The severance tax rate is 5%. The royalty interest is 15 and

ORI 1/8

Required. Prepare entries for Oil company assuming

a) the purchaser of the oil will pay the severance tax to the state and also will pay the non-working interests

b) Oil company will pay the severance tax to the state and also will pay the non working interests

c) Royaltyinterest

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