Freitas Corporation was organized early in 2016. The following expenditures were made during the first few months of the year: $ 12,000 3,000 20,000 2,000 30,000 40,000 Attorneys' fees in connection with the organization of the corporation State filing fees and other incorporation costs Purchase of a patent Legal and other fees for transfer of the patent Purchase of furniture Pre-opening salaries Total $107,000 Required: Prepare a summary journal entry to record the $107,000 in cash expenditures.
Freitas Corporation was organized early in 2016. The following expenditures were made during the first few months of the year: $ 12,000 3,000 20,000 2,000 30,000 40,000 Attorneys' fees in connection with the organization of the corporation State filing fees and other incorporation costs Purchase of a patent Legal and other fees for transfer of the patent Purchase of furniture Pre-opening salaries Total $107,000 Required: Prepare a summary journal entry to record the $107,000 in cash expenditures.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Freitas Corporation was organized early in 2016. The following expenditures were made during the first few
months of the year:
$ 12,000
3,000
20,000
2,000
30,000
40,000
Attorneys' fees in connection with the organization of the corporation
State filing fees and other incorporation costs
Purchase of a patent
Legal and other fees for transfer of the patent
Purchase of furniture
Pre-opening salaries
Total
$107,000
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.
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