Gusher Petroleum obtained a lease on March 1, 2015. Being short on funds, Gusher Petroleum did not begin drilling operations during the first year of the primary term and an March 1, 2016, made a delay rental payment of $8,000. On May 12, 2016, the company paid a bottom-hole contribution of $30,000. The information obtained from this well was so encouraging that Gusher Petroleum decided to begin drilling operations. However, there were some title problem, and drilling was delayed. Legal costs incurred for the title defense were $50,000

What accounts were affected by the above transactions and by what amount?

Answer rating: 100% (QA)

1 Dr Lease Rental payment ... View the full answer