Seif Oil Corporation leased 4,000 unexplored acres, paying a lease bonus of $125/acre. Delay rentals are specified at a rate of S4.50/acre. The leans aires specified that Seif could abandon the lease in 1,000-acre portions. At the end of year 1, Maqam abandon 2,000 acres and paid a delayed rental on the remainder.

Required:

Prepare journal entries for the above activities.

Answer rating: 100% (QA)

ANSWER The answer is following 1 JE for payment of Lease bonus ... View the full answer