Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities:

January $1,$ Year $1$ Purchased for $$215,000$ a silver mine estimated to contain $783,000$ tons of silver ore.

July $1,$ Year $1$ Purchased for $$1,940,000$ cash a tract of land containing timber estimated to yield $3,040,000$ board feet of lumber. At the time of purchase, the land had an appraised of $$185,000.$

February $1,$ Year $2$ Purchased for $$709,000$ a gold mine estimated to yield $29,300$ tons of gold$-$veined ore.

September $1,$ Year $2$ Purchased oil reserves for $$701,000.$ The reserves were estimated to contain $258,000$ barrels of oil, of which $17,000$ would be unprofitable to pump.

Required

Prepare the journal entries to account for the following items. Assume all purchase transactions were made with cash.

$(1)$ The Year $1$ purchases.

$(2)$ Depletion on the Year $1$ purchases, assuming that $66,000$ tons of silver were mined and $1,038,000$ board feet of lumber were cut.

$(3)$ The Year $2$ purchases.

$(4)$ Depletion on the four natural resource assets, assuming that $60,000$ tons of silver ore, $1,193,000$ board feet of lumber, $9,500$ tons of gold ore, and $81,000$ barrels of oil were extracted.

Prepare the portion of the December $31,$ Year $2,$ balance sheet that reports natural resources.

Assume that in Year $3$ the estimates changed to reflect only $65,860$ tons of gold ore remaining. Prepare the depletion journal entry in Year $3$ to account for the extraction of $46,102$ tons of gold ore.