Textbook Problem

Davis Research Company engaged in the following 5 transactions during 2019:

1. 1. Purchased a patent for $35,000. Legal costs of $5,000 were also incurred.
2. 2. Costs paid to improve patent:

1. 3. Licensed a manufacturing process to another company and received $80,000 as an advance payment.
2. 4. Successfully defended a patent infringement suit at a cost of $12,000.
3. 5. Earned $5,000 of the advance payment on the licensed manufacturing process in Item 4.

Required:

Prepare journal entries to record the preceding transactions.