Ernest Oil, Inc. has an account titled Oil and Gas Properties. Ernest paid $$6,300,000$ for oil reserves holding an estimated $200,000$ barrels of oil. Assume the company paid $$590,000$ for additional geological tests of the property and $$490,000$ to prepare for drilling. During the first year, Ernest removed and sold $70,000$ barrels of oil. Record all of Ernest's transactions, including depletion for the first year. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

Ernest paid $$6,300,000$ for oil reserves holding an estimated $200,000$ barrels of oil.

Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves $($geological testing and$/$or drilling$).$ We will do this in the following entry.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Assume the company paid $$590,000$ for additional geological tests of the property and $$490,000$ to prepare for drilling.

Record the payment for additional geological tests of the property and for preparing the property for drilling. $($Record a single compound journal entry.$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[,,,],[,,,],[,,,],[,,,],[,,,]]$

During the first year, Emest removed and sold $70,000$ barrels of oil.

Record the depletion expense for the first year. $($Assume no residual value. Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.$)$