3. Dino Oil Company entered into two test well contribution agreements as follows:

1.On May 17, 2004, a bottom-hole agreement was obtained requiring a payment of

$45,000 when the contract depth of 10,000 feet was reached. The contract depth was

reached on September 21, 2004 and the required payment was made.

2.On September 30, 2004, a dry hole test-well contribution was entered into requiring

payment of $50,000 if the well was dry, but no payment if the well was successful. The

well was successful.

Prepare any necessary entries for the above transactions