Suggested time allocation: 54 minutes The Durak Mhing Company started mining operations on 1 July 2022 Oil was discovered at Farrar on 17th January 2023. In May 2023 after a review of the prospects for the Rosebery site it was decided to abandon operations there. Development of the Farrar site had continued during the year and at 30th June 2023$25 million had been incurred. This cost relates to the construction of plant and equipment. These costs are to be written off on a production basis. It is estimated that there are 5,700,000 barrels which has a current sale price of $65 per barrel. By the 30th June 20231,900,000 barrels had been extracted at a production cost of $8 per barrel of which 1,500,000 barrels were sold. Required Record this first year's transactions by journal entry using the area of interest method. Where necessary round to two decimal places