QUESTION 23 Muneera Oil Company entered into contract to conduct G&G studies and other exploration activities on the lease property owned by Sarah Company in exchange for a working interest of 6/7 of 7/8 if proved reserves are found. If proved reserves are not found, company will reimburse for cost incurred on May 1, 2020, Muneera Oil Company spent $50,000 to conduct G&G. Test well drilled on the lease property determined to be dry, was plugged and abandoned. A. No journal entry will be recorded B. Muneera Company will receive $50,000 from Sarah Oil Company O Muneera Company will receive working interest of 6/7 of 7/8 D. Muneera Company will pay $50,000 to Sarah Oil Company