Answer:
1. Dr Research and development expenses	$25,000	
Cr Cash $25,000
2. Dr Legal fees expenses	$8,500	
Cr Cash $8,500
3. Dr Equipment	$38,000	
Dr Discount on Note Payable	$5,599	
Cr Cash $19,000
Cr Note Payable $24,500
4. Dr Building - sprinkler system	$41,000	
Cr Cash $41,000
5. Dr Patent	$25,000	
Cr Cash $25,000
6. Dr Equipment new $13,900
Dr Accumulated Depreciation - equipment $7,000	
Dr Loss on trade in	$3,600	
Cr Cash $10,600
Cr Equipment - old $13,900
Explanation:
Preparation of the journal entries
1. Dr Research and development expenses	$25,000	
Cr Cash $25,000
2. Dr Legal fees expenses	$8,500	
Cr Cash $8,500
3. Dr Equipment	$38,000	
Dr Discount on Note Payable	$5,599	
($38,000-$19,000-$24,500)
Cr Cash $19,000
Cr Note Payable $24,500
4. Dr Building - sprinkler system	$41,000	
Cr Cash $41,000
5. Dr Patent	$25,000	
Cr Cash $25,000
6. Dr Equipment new $13,900
Dr Accumulated Depreciation - equipment ($13,900 - $6,900) $7,000	
Dr Loss on trade in	$3,600	
($10,600+$13,900-$13,900-$7,000)
Cr Cash $10,600
Cr Equipment - old $13,900