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Hello I need help with this question ASSIGNMENT 11-3 1. value: 10.00 points Problem 10-5 Acquisition costs; journal entries [LO10-1, 10-3, 10-6, 10-8] Consider each
Hello I need help with this question
ASSIGNMENT 11-3 1. value: 10.00 points Problem 10-5 Acquisition costs; journal entries [LO10-1, 10-3, 10-6, 10-8] Consider each of the transactions below. All of the expenditures were made in cash. 1. The Edison Company spent $32,000 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 $12,000. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $26,000 down and signed a noninterest-bearing note requiring the payment of $28,000 in nine months. The cash price for this equipment was $45,000. 4. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $48,000. 5. The Mayer Company, plaintiff, paid $32,000 in legal fees in November, in connection with a successful infringement suit on its patent. 6. The Johnson Company traded its old machine with an original cost of $17,400 and a book value of $9,000 plus cash of $12,000 for a new one that had a fair value of $16,000. The exchange has commercial substance. Required: Prepare journal entries to record each of the above transactions. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)Step by Step Solution
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