Angelou Corporation was organized in 2019 and began operations at the beginning of 2020. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations. Attorney fees in connection with organization of the company $15,000 Purchase of drafting and design equipment 10,000 Costs of meetings of incorporators to discuss organizational activities 7,000 State filing fees to incorporate 1,000 $33,000 Instructions a. Compute the total amount of organization costs incurred by Angelou. b. Prepare the journal entry to record organization costs for 2020.
Angelou Corporation was organized in 2019 and began operations at the beginning of 2020. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations. Attorney fees in connection with organization of the company $15,000 Purchase of drafting and design equipment 10,000 Costs of meetings of incorporators to discuss organizational activities 7,000 State filing fees to incorporate 1,000 $33,000 Instructions a. Compute the total amount of organization costs incurred by Angelou. b. Prepare the journal entry to record organization costs for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Angelou Corporation was organized in 2019 and began operations at the beginning of 2020. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations.
| Attorney fees in connection with organization of the company | $15,000 |
| Purchase of drafting and design equipment | 10,000 |
| Costs of meetings of incorporators to discuss organizational activities | 7,000 |
| State filing fees to incorporate | 1,000 |
| $33,000 |
Instructions
a. Compute the total amount of organization costs incurred by Angelou.
b. Prepare the
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