During 2018, Aggie Petroleum made the following transactions relating to testwell contributions:

a)- Contracted with Garth Energy Corporation, agreeing to pay 80,000 if a well was drilled on Garths lease

to a depth of 20,000 feet.

b)- Contracted to pay Varsity Oil Company 50,000 if a well being drilled on Varsitys property was dry.

c)- Agreed to pay Richards Oil Company 90,000 if a well being drilled reached a depth of 9,000

feet.

Results from the above transactions were the following:

a)- Because of mechanical difficulty, the Garth well was abandoned at 9,500 feet.

b)- The Varsity well was dry.

c)- The Richards well was completed as a producer at 12,000 feet.

REQUIRED: Prepare entries for the above transactions, assuming Aggie Petroleum fulfilled its contractual

obligations.

Q6- During 2018, Aggie Petroleum made the following transactions relating to testwell contributions: a)- Contracted with Garth Energy Corporation, agreeing to pay 80,000 if a well was drilled on Garth's lease to a depth of 20,000 feet. b)- Contracted to pay Varsity Oil Company 50,000 if a well being drilled on Varsity's property was dry. c)- Agreed to pay Richards Oil Company 90,000 if a well being drilled reached a depth of 9,000 feet. Results from the above transactions were the following: a)- Because of mechanical difficulty, the Garth well was abandoned at 9,500 feet. b)- The Varsity well was dry. c)- The Richards well was completed as a producer at 12,000 feet. REQUIRED: Prepare entries for the above transactions, assuming Aggie Petroleum fulfilled its contractual obligations