Q. Property 430 is a joint working interest property. Texas Oil and Gas Ltd owns 50%, World Oil Corporation Ltd owns 35%, and Kansas Oil Ltd own 15% of the working interest. Assume Texas Oil and Gas Ltd is the operator and incurs the following costs during the month of March 2019 in connection with the property.

Salaries and wages, field employees	$90,000
Salaries and wages, first-level field supervisors	$60,000
FICA and Medicare taxes, 7.5% of the above	$11,250
New separator, purchased and installed	$42,000
Repairs to Christmas tree	$17,000
Property taxes paid	$18,000

Other costs:

• Employee benefits 14% of salaries and wages
• Transportation of material and employees, 1,200 miles @ $0.42/mile
• Overhead, 18% of all costs listed above

Required and marking schema: (Please round your answers up to even numbers)

Give the journal entries and distribute the costs, assuming regular accounts are used.

1. Submitted on time (0.5 marks) and with a correct cover sheet (0.5 marks).
2. Journal entries relating to regular accounts (0.25 marks each = 2/10)
3. End-of-the-month journal entry(s) (2 marks)
4. Ending journal entry(s) for the operator (2 marks)
5. Ending journal entry (s) for the non-operator(s) (3 marks)