Hard Luck Oil Company had the following transactions in 2007 concerning test-well contributions:

a. Contracted with Tiger Oil Company, agreeing to pay \($50,000\) if a well was drilled on Tiger’s lease to a depth of 10,000 feet.

b. Contracted to pay Landa Oil Company \($40,000\) if a well being drilled on Landa’s property was dry.

c. Agreed to pay Richards Oil Company \($100,000\) if a well being drilled reached a depth of 7,500 feet.

Results from the above transactions were the following:

a. Because of mechanical difficulty, the Tiger well was abandoned at 9,500 feet.

b. The Landa well was dry.

c. The Richards well was completed as a producer at 12,000 feet.

Prepare entries for the above transactions, assuming Hard Luck Oil Company fulfilled its contractual obligations.