Problem 10-5 (Algo) 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 $18,000 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 $5,000. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $12,000 down and signed a noninterest-bearing note requiring the payment of $21,000 in nine months. The cash price for this equipment was $29,000. 4. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $34,000. 5. The Mayer Company, plaintiff, paid $18,000 in legal fees in November, in connection with a successful infringement suit on its patent. 6. The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $11,800. The old equipment had an original cost of $10,400 and a book value of $4,800 at the time of the trade. Johnson also paid cash of $9,200 as part of the trade. The exchange has commercial substance. Required: Prepare journal entries to record each of the above transactions. Complete this question by entering your answers in the tabs below. Required: Prepare journal entries to record each of the above transactions. Complete this question by entering your answers in the tabs below. Prepare journal entries to record each of the above transactions 1 to 5 . (If no entry is required for a transaction/event, select "No journa entry required" in the first account field.) Journal entry worksheet $18,000 during the year for experimental purposes Note: Enter debits before credits. Journal entry worksheet In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $5,000. Note: Enter debits before credits. Journal entry worksheet In March, the Cleanway Laundromat bought equipment. Cleanway paid $12,000 down and signed a noninterest-bearing note requiring the payment of $21,000 in nine months. The cash price for this equipment was $29,000. Note: Enter debits before credits. Journal entry worksheet On June 1 , the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $34,000. Note: Enter debits before credits. Journal entry worksheet