5. During the calendar year, 2005 Gonzales Company had the following transactions on an

unproved property:

1. Drilled Morgan #1 with IDC costs of $310,000 and equipment cost of $42,000

2. The well was determined to be dry and was plugged and abandoned at a cost of

$10,000. Salvaged equipment placed in inventory was valued at $8.000.

Prepare journal entries for the transactions