Consider each of the transactions below. All of the expenditures were made in cash.
The Edison Company spent $ during the year for experimental purposes in connection with the development of a new product.
In April, the Marshall Company lost a patent infringement suit and paid $ in legal fees to the plaintiff.
In March, the Cleanway Laundromat bought equipment. Cleanway paid $ down and signed a noninterestbearing note requiring the payment of $ in nine months. The cash price for this equipment was $
On June the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $
The Mayer Company, plaintiff, paid $ in legal fees in November, in connection with a successful infringement suit on its patent.
The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $ The old equipment had an original cost of $ and a book value of $ at the time of the trade. Johnson also paid cash of $ as part of the trade. The exchange has commercial substance.
Required:
Prepare journal entries to record each of the above transactions.,
Complete this question by entering your answers in the tabs below.
