Seif Oil Corporation leased 4,000 unexplored acres, paying a lease bonus of $125/acre. Delay rentals are specified at a rate of $4.50/acre. The lease also specified that Seif could abandon the lease in 1,000-acre portions. At the end of year 1, Maqam abandons 2,000 acres and paid a delayed rental on the

required:

Prepare journal entries for the above activities