Question 3 (15 marks) Canadian Oil Production Ltd.'s business included selling refined petroleum products. Canadian Oil Production Ltd. purchased an oil lease for $ 20 million cash; that oil lease had an estimated reserve of 3,000,000 barrels of oil. Canadian Oil Production Ltd. paid $ 600,000 for further environmental tests, and $ 200,000 to get the land ready for drilling. Before production started, Canadian Oil Production Ltd. signed a $ 300,000 note payable; those funds were used to construct a building on the property. The building was the onsite headquarters for the drilling operation and the building will be deserted when the oil is depleted. Therefore, the building's cost was debited to the Oil Properties account and included in amortization charges. During the first year of production, Canadian Oil Production Ltd. removed 200,000 barrels of oil, which it sold on credit for $ 95 per barrel. Required: A. Prepare journal entries in the general journal to record the transactions relating to the oil properties, including amortization and the sale of the first-year production. Dates are not required. Round the amortization amount to the nearest dollar. B. Prepare a partial balance sheet, showing the oil properties' accounts and dollar amounts. Question 3 (15 marks) Canadian Oil Production Ltd.'s business included selling refined petroleum products. Canadian Oil Production Ltd. purchased an oil lease for $ 20 million cash; that oil lease had an estimated reserve of 3,000,000 barrels of oil. Canadian Oil Production Ltd. paid $ 600,000 for further environmental tests, and $ 200,000 to get the land ready for drilling. Before production started, Canadian Oil Production Ltd. signed a $ 300,000 note payable; those funds were used to construct a building on the property. The building was the onsite headquarters for the drilling operation and the building will be deserted when the oil is depleted. Therefore, the building's cost was debited to the Oil Properties account and included in amortization charges. During the first year of production, Canadian Oil Production Ltd. removed 200,000 barrels of oil, which it sold on credit for $ 95 per barrel. Required: A. Prepare journal entries in the general journal to record the transactions relating to the oil properties, including amortization and the sale of the first-year production. Dates are not required. Round the amortization amount to the nearest dollar. B. Prepare a partial balance sheet, showing the oil properties' accounts and dollar amounts