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The Fisher Lease is a joint working interest. Garcia Energy owns 70%, Cameron Company owns 20%, and Tampa Oil Company owns 10% of the working
The Fisher Lease is a joint working interest. Garcia Energy owns 70%, Cameron Company owns 20%, and Tampa Oil Company owns 10% of the working interest. Assume Garcia Energy is the operator and incurs the following costs during the month of July 2019, in connection with the property: Salaries and wages, first-level field supervisors Salaries and wages, field employees. Operator's cost of holiday, vacation, sickness, and disability benefits 8% of above... . FICA and Medicare taxes, 7.65% of above. $10,000 8,000 1,440 1,350 2,000 Employee benefits, group life insurance Material installed on property from Garcia's inventory Transportation of material and employees 2,000 miles @$0.25/mile. . Contract service, reacidizing (workover) Purchase and installation of compressor unit Repair of Christmas tree Property taxes paid. Insurance premium paid. . Overhead, three wells @ $700/well. 1,500 500 5,000 4,000 1,000 500 800 2,100 REQUIRED: Give the entries to record and distribute the costs, assuming regular accounts are used
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