Question

Texas Oil Company operates solely in the United States. The following amounts are paid during June 2018 relating to producing leases:

  Fuel for Lease A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,100

Supplies for Lease A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000

  Labor cost for pumpers and gaugers—Lease A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,500

Fringe benefits of pumpers and gaugers who work on several leases . . . . . . . . . . $   8,000

Salaries and fringe benefits of regional supervisors . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000

Contract labor for refracturing well of Lease A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000

Property tax—Lease A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,000

Transportation cost for several leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,200

Required: Record the above transactions.

Answer 1

Texas Oil Company
Journal entry
Date	Particulars	Dr.($)	Cr.($)
Jun-18	Power and Fuel A/c Dr.	50,100
		To	Cash A/c			50,100
Jun-18	Supplies A/c Dr.		15,000
		To	Cash A/c			15,000
Jun-18	Salaries and Wages A/c Dr.	20,500
		To	Cash A/c			20,500
Jun-18	Employee benefits A/c Dr.	8,000
		To	Cash A/c			8,000
Jun-18	Employee benefits A/c Dr.	20,000
		To	Cash A/c			20,000
Jun-18	Salaries and Wages A/c Dr.	12,000
		To	Cash A/c			12,000
Jun-18	Property Tax Expense A/c Dr.	14,000
		To	Cash A/c			14,000
Jun-18	Transportation expense A/c Dr.	10,200
		To	Cash A/c			10,200