Bartz Oil Company acquired the shooting rights on 30,000 acres at a cost of 1.00/acre on June 1, 2019. Bartz contracted and paid 100,000 for a reconnaissance survey during 2019. As a result of this broad Exploration study, Lease A and Lease B were leased on January 23, 2020. (Ignore acquisition costs.) Detailed surveys costing a total of 39,000 were done during January and February on the leases. During July, Bartz entered into two test-well contribution agreements: a bottom-hole contribution agreement for 12,000 with a specified depth of 11,000 feet, and a dry-hole contribution of $25,000 also with a specified depth of 11,000 feet. In November, both wells were drilled to 11,000 feet. The well with the bottom-hole contribution was successful, but the well with the dry-hole contribution was dry. The cost for maintaining land and lease records allocated to these two properties for 2020 was 2,500Ad valorem taxes were assessed on Bartzs economic interest in both properties, amounting to 5,000 for 2020 In April 2021, Bartz made the decision to go ahead and drill a well on Lease B. Before drilling the well, costs of 19,000 were incurred to successfully defend a title suit concerning Lease B.

REQUIRED: Give all entries necessary to record these transactions. Assume any necessary delay rental payments were made.

Bartz Oil Company acquired the shooting rights on 30,000 acres at a cost of 1.00/acre on June 1, 2019. Bartz contracted and paid 100,000 for a reconnaissance survey during 2019. As a result of this broad Exploration study, Lease A and Lease B were leased on January 23, 2020. (Ignore acquisition costs.) Detailed surveys costing a total of 39,000 were done during January and February on the leases. During July, Bartz entered into two test-well contribution agreements: a bottom-hole contribution agreement for 12,000 with a specified depth of 11,000 feet, and a dry-hole contribution of $25,000 also with a specified depth of 11,000 feet. In November, both wells were drilled to 11,000 feet. The well with the bottom-hole contribution was successful, but the well with the dry-hole contribution was dry. The cost for maintaining land and lease records allocated to these two properties for 2020 was 2,500Ad valorem taxes were assessed on Bartz's economic interest in both properties, amounting to 5,000 for 2020 In April 2021, Bartz made the decision to go ahead and drill a well on Lease B. Before drilling the well, costs of 19,000 were incurred to successfully defend a title suit concerning Lease B. REQUIRED: Give all entries necessary to record these transactions. Assume any necessary delay rental payments were made