Exercise-1: Marx Oil Company acquired the exploration rights on 10,000 acres at $5/acre and then hired an independent geological firm to conduct the initial G&G work for $62,000. As a result of the G&G work, Marx Company decided to lease 500 acres (ignore acquisition costs). Marx then hired the same geological firm to perform detailed G&G studies on the 500 acres at a cost of $100,000.

REQUIRED: Give the entries to record these transactions.

Exercise-1: Marx Oil Company acquired the exploration rights on 10,000 acres at $5/ acre and then hired an independent geological firm to conduct the initial G\&G work for $62,000. As a result of the G\&G work, Marx Company decided to lease 500 acres (ignore acquisition costs). Marx then hired the same geological firm to perform detailed G\&G studies on the 500 acres at a cost of $100,000. REQUIRED: Give the entries to record these transactions