2. Wildcat Oil Company obtained a lease on March 1, 2005. Being short of funds, Wildcat Oil Company did not begin drilling operations during the first year of the primary term and on March 1, 2006, made a delay rental payment of $8,000. On May 12,2006 , the company paid a bottom-hole contribution of $30,000. The information obtained from this well was so encouraging that Wildcat Oil Company decided to begin drilling operations; however, there were some title problems and drilling was delayed. Legal costs incurred for title defense were $50,000. Give the entries. 8. Basic Oil Company conducted G\&G activities on leases owned by Artificial Oil Company and Universal Oil Company. Each agreement provides for Basic Oil Company to receive 1/4 of each WI if proved reserves are found and to be reimbursed if proved reserves are not found. Basic Oil Company incurred the following G\&G costs on Artificial's and Universal's leases: Artificial $50,000 Universal $40,000 The well drilled on the Artificial Oil lease was successful, and 1/4 of the WI was assigned. Drilling on the Universal lease resulted in a dry hole, and Basic was reimbursed for the G\&G costs incurred. Prepare entries for the above transactions. 9. Core Oil Company obtained a three-year lease on 1,000 acres on May 1, 2004 that contained a $3 per acre delay rental clause. Drilling operations were started on June 15, 2005 and completed on October 16, 2005. The well, determined to be dry, was plugged and abandoned. No further drilling operations were started during the primary term. All required delay rentals were paid. Give all entries relating to the delay rental requirement