Marx Oil Company acquired the exploration rights on 20,000 acres at $4/acre and then hired an independent geological firm to conduct the initial G&G work for $83,000. As a result of the G&G work, Marx Company decided to lease 600 acres (ignore acquisition costs). Marx then hired the same geological firm to perform detailed G&G studies on the 600 acres at a cost of $100,000.

REQUIRED: 

Give the entries to record these transactions.