Davis Research Company engaged in the following 5 transactions during 2019:
1. Purchased a patent for $35,000. Legal costs of $5,000 were also incurred.
2. Costs paid to improve patent:
Engineering costs ...............................................$20,000
Assembling and testing prototypes ...................10,000
Other R&D costs ...................................................25,000
3. Licensed a manufacturing process to another company and received $80,000 as an advance payment.
4. Successfully defended a patent infringement suit at a cost of $12,000.
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.