Freitas Corporation was organized early in 2011. The following expenditures were
ID: 2385969 • Letter: F
Question
Freitas Corporation was organized early in 2011. 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 a 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
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.
Attorneys' fees in connection with the organization of the corporation
$12,000
State filing fees and other incorporation costs
3,000
Purchase of a 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
Explanation / Answer
(DR)Organization cost expense 15,000
(DR)Patent 22,000
(DR)Furniture 30,000
(DR)Pre-opening expenses 40,000
(CR)Cash 107,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.