Bartz Oil Company acquired the shooting rights on 25,000 acres at a cost of $1.00/acre on June 1, 2019. Bartz contracted and paid $98,000 for a reconnaissance survey during 2019. As a result of this broad exploration study, Lease A and Lease B were leased on January 23, 2020. (Ignore acquisition costs.) Detailed surveys costing a total of $41,000 were done during January and February on the leases. During July, Bartz entered into two test-well contribution agreements: a bottomhole contribution agreement for $15,000, with a specified depth of 11,000 feet, and a dry-hole contribution of $20,000, also with a specified depth of 11,000 feet. In November, both wells were drilled to 11,000 feet. The well with the bottom-hole contribution was successful, but the well with the dry-hole contribution was dry.

The cost for maintaining land and lease records allocated to these two properties for 2020 was $2,000. Ad valorem taxes were assessed on Bartz’s economic interest in both properties, amounting to $2,500 for 2020.

In April 2021, Bartz made the decision to go ahead and drill a well on Lease B.

Before drilling the well, costs of $17,000 were incurred to successfully defend a title suit concerning Lease B.

REQUIRED: Give all entries necessary to record these transactions. Assume any necessary delay rental payments were made.