12. Ebert Company incurred the following costs during the fiscal year ending May 31, 2005. June 1, 2004 G&G costs, $50,000 August 10, 2004 Lease bonus of $80 an acre on a 1,000 acre lease and other acquisition costs of $2,000 December 15, 2004 Dry-hole costs of an exploratory well, $400,000 January 18, 2005 Successful well costs, $600,000 April 10, 2005 Cost of production facilities, $500,000 April 30, 2005 Production costs, $40,000 Prepare journal entries for the above transaction, assuming that Ebert Company uses the full-cost method of accounting.

12. Ebert Company incurred the following costs during the fiscal year ending May 31 , 2005. June 1, 2004 G\&G costs, $50,000 August 10, 2004 Lease bonus of $80 an acre on a 1,000 acre lease and other acquisition costs of $2,000 December 15,2004 Dry-hole costs of an exploratory well, $400,000 January 18,2005 Successful well costs, $600,000 April 10, 2005 Cost of production facilities, $500,000 April 30, 2005 Production costs, $40,000 Prepare journal entries for the above transaction, assuming that Ebert Company uses the full-cost method of accounting