Steven Energy Company entered into the following test-well contribution agreements:

a. On June 2, 2018, a bottom-hole contribution agreement was obtained requiring a payment of $80,000 when the contract depth of 14,000 feet was reached. The contract depth was reached on September 21, 2018, and the required payment was made.

b. On July 28, 2018, a dry-hole test-well contribution was entered into, requiring payment of $64,000 if the well was dry but no payment if the well was successful.

1) Assume the well is successful.

2) Assume the well is dry.

REQUIRED: Prepare necessary entries for the above transactions.