Charles Oil Incorporated capitalized the following costs relating to two unproved leases:

Charles Oil Incorporated negotiated a new lease on Lease C immediately following the end of the primary term. The lease bonus was $150/acre on the new lease. Before the end of the primary term, Charles Oil also obtained a new lease on Lease D at a lease bonus rate of $130/acre. This lease was to take effect prior to the end of the primary term.
REQUIRED: Prepare journal entries for the two leases.

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Lease C (600 acres) $42,000 Lease D (1,200 acres) $50,000