Halax Oil and Gas Corporation agreed to conduct G&G studies and other exploration activities on a lease owned by Bart Energy Company in exchange for an interest in the property if proved reserves are found. If proved reserves are not found, Halax will be reimbursed for costs incurred. a)- Halax incurs $245,000 of exploration costs. b)- Assume proved reserves are found. c)- Assume instead that proved reserves are not found.

REQUIRED: Give any entries required.

Q10- Halax Oil and Gas Corporation agreed to conduct G\&G studies and other exploration activities on a lease owned by Bart Energy Company in exchange for an interest in the property if proved reserves are found. If proved reserves are not found, Halax will be reimbursed for costs incurred. a)- Halax incurs $245,000 of exploration costs. b)- Assume proved reserves are found. c)- Assume instead that proved reserves are not found. REQUIRED: Give any entries required