Answer: Please see explanation column for answers
Explanation:
1.Journal to record amount spent on experimental purposes for development of new product
Date Account Debit Credit
Research and development expense $ 22,000.00
Cash $22,000.00
2. Journal to record amount paid for legal fees for lost in infringement suit
Date Account Debit Credit
April legal fee expense $7,000.00
Cash $ 7,000.00
3. Journal to record amount and note payable for purchase of equipment
Date Account Debit Credit
March Equipment $ 35,000.00
Discount on note payable 4,000.00
Cash $ 16,000.00
Note payable $ 23,000.00
Calculation:
Discount on note payable= (23,000 +16,000)- $35,000 = $4000
4Journal to record amount paid for installation of sprinkler system
Date Account Debit Credit
June 1 Building- sprinkler system $ 38,000.00
Cash $ 38,000.00
5
Journal to record amount received by plaintiff for successful infringement
Date Account Debit Credit
patent $ 22,000.00
Cash $ 22,000.00
6.Journal to record purchase of new machine in exchange of old one
Date Account Debit Credit
new machine-fair value $ 13,000.00
lost in trade-in $ 3,000.00
Accumulated depreciation $6,400.00
old machine $ 12,400.00
Cash $ 10,000.00
Calculation:
lost in trade-in = book value of old machine + cash paid for machine - fair value of new equipment =(6000+10000-13000)
= $3000
Accumulated depreciation=original cost of old machine - book value = $12400- $6000=$6,400
