What are the six journal entries? Consider each of the transactions below. All of the expenditures were made in cash. Whatare each of the corresponding journal entries?1. The Edison Company spent $21,000 during the year for experimental purposes inconnection with the development of a new product.2. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff$6,500.3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $15,000down and signed a noninterest-bearing note requiring the payment of $22,500 in ninemonths. The cash price for this equipment was $34,000.4. On June 1, the Jamsen Corporation installed a sprinkler system throughout thebuilding at a cost of $37,000.5. The Mayer Company, plaintiff, paid $21,000 in legal fees in November, in connectionwith a successful infringement suit on its patent.6. The Johnson Company traded its old equipment for new equipment. The newequipment has a fair value of $12,700. The old equipment had an original cost of$11,900 and a book value of $5,700 at the time of the trade. Johnson also paid cash of$9,800 as part of the trade. The exchange has commercial substance.

The financial transactions are initially recorded in the form of journal entry.

Consider each of the transactions below. All of the expenditures were made in cash. What are each of the corresponding journal entries? 1. The Edison Company spent $21,000 during the year for experimental purposes in connection with the development of a new product. 2. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $6,500. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $15,000 down and signed a noninterest-bearing note requiring the payment of $22,500 in nin months. The cash price for this equipment was $34,000.

Consider each of the transactions below. All of the expenditures were made in cash. What are each of the corresponding journal entries? 1. The Edison Company spent $21,000 during the year for experimental purposes in connection with the development of a new product. 2. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $6,500. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $15,000 down and signed a noninterest-bearing note requiring the payment of $22,500 in nin months. The cash price for this equipment was $34,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

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