ENG Oil Company produced and sold 30,000 barrels of oil during May 2020 at $60/bbl from lease A. The company has 4/5 revenue interest in the above lease with 60% working interest. North Oil Company is a non-operator working interest owner in Lease A. In addition, the National Company purchased ORI in lease A. The severance tax rate applied is 5% and ENG reported revenue of $810,000 for May sales. prepare the journal entry for the overriding interest owner to record the sale of oil.
ENG Oil Company produced and sold 30,000 barrels of oil during May 2020 at $60/bbl from lease A. The company has 4/5 revenue interest in the above lease with 60% working interest. North Oil Company is a non-operator working interest owner in Lease A. In addition, the National Company purchased ORI in lease A. The severance tax rate applied is 5% and ENG reported revenue of $810,000 for May sales. prepare the journal entry for the overriding interest owner to record the sale of oil.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ENG Oil Company produced and sold 30,000 barrels of oil during May 2020 at $60/bbl from lease A. The company has 4/5 revenue interest in the above lease with 60% working interest. North Oil Company is a non-operator working interest owner in Lease A. In addition, the National Company purchased ORI in lease A. The severance tax rate applied is 5% and ENG reported revenue of $810,000 for May sales.
prepare the
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