Freitas Corporation was organized early in 2009. The following expenditures were made during the first few months of the year:
Attorneys' fees in connection with the organization of the corporation $12,000
State filing fees and other incorporation costs 3,000
Purchase of the patent 20,000
Legal and other fees for transfer of the patent 2,000
Purchase of furniture 30,000
Pre-opening salaries 40,000
total $107,000
Prepare a summary journal entry to record the $107,000 in cash expenditures.
2 answers
jkdfjkfl
Organization cost expense 12,000+3,000) $15,000
Patent ($20,000 + 2,000) $22,000
Furniture $30,000
Pre-opening expenses $40,000
Cash 107,000
Patent ($20,000 + 2,000) $22,000
Furniture $30,000
Pre-opening expenses $40,000
Cash 107,000
2 answers