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Seif Oil Corporation leased 4,000 unexplored acres, paying a lease bonus of $125/acre. Delay rentals are specified at a rate of S4.50/acre. The leans aires

Seif Oil Corporation leased 4,000 unexplored acres, paying a lease bonus of $125/acre. Delay rentals are specified at a rate of S4.50/acre. The leans aires specified that Seif could abandon the lease in 1,000-acre portions. At the end of year 1, Maqam abandon 2,000 acres and paid a delayed rental on the remainder.

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Prepare journal entries for the above activities.

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