10. Lawrence Pipeline Company purchased 300 barrels of oil from Stout Oil Company. The gross value of the oil was $30,000. The severance tax rate is 5%. Give the journal entry to record revenue and severance taxes for Stout, assuming Lawrence disbursed the royalty and remitted all taxes, and assuming a division order as follows: Stout Oil Company: Interest 0.75 Royalty Owner: Interest 0.25

10. Lawrence Pipeline Company purchased 300 barrels of oil from Stout Oil Company. The gross value of the oil was $30,000. The severance tax rate is 5%. Give the journal entry to record revenue and severance taxes for Stout, assuming Lawrence disbursed the royalty and remitted all taxes, and assuming a division order as follows: Stout Oil Company: Interest 0.75 Royalty Owner: Interest 0.25

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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