Answer | |||
S.No. | Account titles and Explanation | Debit ($) | Credit ($) |
1 | Research and development expense | $ 26,000 | |
Cash | $ 26,000 | ||
( To record R& D Exp) | |||
2 | Legal fees expense | $ 9,000 | |
Cash | $ 9,000 | ||
(To record Legal fees expense) | |||
3 | Equipment | $ 39,000 | |
Discount on note payable | $ 6,000 | ||
Cash | $ 20,000 | ||
Note payable | $ 25,000 | ||
( To record purchase of equipment) | |||
4 | Building - Sprinkler system | $ 42,000 | |
Cash | $ 42,000 | ||
( To record the installation Sprinkler system) | |||
5 | Patent | $ 26,000 | |
Cash | $ 26,000 | ||
( To record the legal fees ) | |||
6 | Machine - New | $ 14,200 | |
Loss on trade-in | $ 3,800 | ||
Accumulated depreciation - Machine ($14400-$7200) | $ 7,200 | ||
Machine - Old | $ 14,400 | ||
Cash | $ 10,800 | ||
( To record the exchange of new machine in exchange of old machine ) |
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