Good Luck Oil Company drilled a successful gas well. Although capable of production, the well was shut-in awaiting the completion of a pipeline. Shut-in royalty payments of \($300\) per month were paid during the months of June through August.

Assume the following independent cases:

a. The shut-in royalty payments were recoverable from future production. Give the entry to record payment of the shut-in royalty for June.

b. The shut-in royalty payments were not recoverable from future production. Give the entry to record payment of the shut-in royalty for June.