Mabel Energy Company acquired a 200-acre lease. However, due to a decline in oil prices, Mabel decided
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Mabel Energy Company acquired a 200-acre lease. However, due to a decline in oil prices, Mabel decided not to drill on the lease during the first year and therefore made a delay rental payment of $3,500. Mabel also paid property taxes assessed on its interest in the property of $1,900 and legal fees of $5,000 in defending the title to the property.
REQUIRED: Prepare the journal entries to record each of these transactions.
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