McGavin Oil Company incurred the following costs during calendar year 2016:

Prepare journal entries for the above transactions using the successful efforts method of accounting.

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February 1 March 2 May 30 June 28 August 15 Cost of G&G activities to locate an oil prospect, $100,000 Acquisition costs for a 400-acre lease: lease bonus $50/acre; other costs incurred in acquiring the property, $1,000 Dry-hole costs of an exploratory well, $315,000 Successful exploratory well costs, $405,000 Cost of production facilities such as flow lines and separators, $225,000 September 1 Production costs, $50,000