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Cheney Oil, Inc. has an account titled Oil and Gas Properties. Cheney paid $6,900,000 for...

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Cheney Oil, Inc. has an account titled Oil and Gas Properties. Cheney paid $6,900,000 for oil reserves holding an estimated 600,000 barrels of oil. Assume the company paid $560,000 for additional geological tests of the property and $460,000 to prepare for drilling. During the first year, Cheney removed and sold 62.000 barrels of oil. Record all of Cheney's transactions, including depletion for the first year (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Cheney paid $6,900,000 for oil reserves holding an estimated 600,000 barrels of oil. Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves (geological testing and/or drilling). We will do this in the following entry Cheney Oil, Accumulated Depletion-Oil and Gas Properties OV, U0 par Accumulated Depreciation-Oil and Gas Properties prepare for or oil reserves holding an estimated of the property and $460,000 to Record all of Cheney's I the explanation on the last line of transactions Cash the journal e Depletion Expense Oil and Gas Properties Depreciation Expense Oil and Gas Properties Date Oil and Gas Properties Debit Credit

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