Cheyenne Corporation was organized in 2019 and began operations at the beginning of 2020. The company is involved in interiordesign consulting services. The following costs were incurred prior to the start of operations.Attorney's fees in connection with organization of the company$15,500Purchase of drafting and design equipment10,500Costs of meetings of incorporators to discuss organizational activities5,400State filing fees to incorporate1,400$32,800(a)Your answer is correct.Compute the total amount of organization costs incurred by Cheyenne.Total organization costs2$22300eTextbook and MediaList of Accounts (b)Prepare the journal entry to record organization costs for 2020. (Credit account titles are automatically indented when amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCrediteTextbook and Media

Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Cheyenne 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's fees in connection with organization of the company $15,500 Purchase of drafting and design equipment 10,500 Costs of meetings of incorporators to discuss organizational activities 5,400 State filing fees to incorporate 1,400 $32,800

Cheyenne 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's fees in connection with organization of the company $15,500 Purchase of drafting and design equipment 10,500 Costs of meetings of incorporators to discuss organizational activities 5,400 State filing fees to incorporate 1,400 $32,800

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 27CE

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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 journal entry to record organization costs for 2020.
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