Sunrise Petroleum owned the following unproved property as of the end of 2017.

Significant Leases		Insignificant Leases
Lease G	$250,000	Lease H	$40,000
Lease I	$450,000	Lease J	$30,000
Total	$700,000	Lease K	$20,000
		Lease L	$25,000
		Total	$115,000

Although no activity took place on Lease G during the year, Sunrise Petroleum decided that Lease G was not impaired because there were still four years left in that lease’s primary term. One dry hole was drilled on Lease I during the year; but because Sunrise Petroleum intended to drill one more well on Lease I in the coming year, it decided that Lease I was only 45% impaired. With respect to the insignificant leases, past experience indicates that 72% of all unproved properties assessed on a group basis will eventually be abandoned. Sunrise Petroleum’s policy is to provide at year-end an allowance equal to 70% of the gross cost of these properties. The allowance account had a balance of $20,000 at year end. Give the entries to record impairment, prepare the statement of retained earnings, and adjust the trial balance.