Abbot Oil Corporation, located in Houston, Texas, has been operating for four years. Abbot uses full cost accounting and excludes all possible costs from the amortization base. The following account balances are as of the end of 2020.

REQUIRED: Give any entries necessary for the following events and transactions:

a. Lease A was abandoned on March 20, 2021.

b. Lease B was proved on May 13.

c. Insignificant leases costing $80,000 were acquired during 2021.

d. Lease E was abandoned early in July.

e. Lease F was proved October 21.

f. At December 31, Abbot decides that Lease D should be impaired an additional $120,000.
g. At December 31, Abbot decides to continue its policy of maintaining an allowance for impairment equal to 60% of unproved insignificant leases.

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Lease A Lease B Lease C Insignificant Leases Cost Total Impairment $50,000 60,000 30,000 $140,000 $84,000 Lease D Lease E Lease F Significant Leases Cost $600,000 500,000 750,000 Impairment $200,000 200,000 400,000