consider each of the transactions below. all of the expenditures were made in cash. the edison company spent $15,000 during the year for experimental purposes in connection with the development of a new product. in april, the marshall company lost a patent infringement suit and paid the plaintiff $9,000. in march, the cleanway laundromat bought equipment. cleanway paid $9,000 down and signed a noninterest-bearing note requiring the payment of $19,500 in nine months. the cash price for this equipment was $26,000. on june 1, the jamsen corporation installed a sprinkler system throughout the building at a cost of $31,000. the mayer company, plaintiff, paid $15,000 in legal fees in november, in connection with a successful infringement suit on its patent. the johnson company traded its old equipment for new equipment. the new equipment has a fair value of $10,900. the old equipment had an original cost of $8,900 and a book value of $3,900 at the time of the trade. johnson also paid cash of $8,600 as part of the trade. the exchange has commercial substance. required: prepare journal entries to record each of the above transactions.
