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2015 is the first year of ABC Inc. During the year it completed the following transactions by paying cash. Record the journal entry for each transaction. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places.

1. August 8 : To advertise the grand opening of the business, and increase customer awareness, the company paid $37,000 for television commercials and newspaper advertising.
2. September 3 : Purchased an existing patent from an external corporation for $10,000 cash. The patent will not be used in the daily business operations, but instead will be held as a long-term investment. It is capable of generating royalty revenues for the business.
3. September 16 : $10,000 was paid in legal fees while unsuccessfully attempting to defend the patent acquired previously for $10,000. Management now deems this patent no longer has significant revenue-generating ability.
4. October 2 : Paid $12,000 in lawyer's fees and other legal costs arising from the incorporation of the business.

General JournalPage G6

Date. Account/Explanation. PR Debit Credit

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