towards Company was form accounting fees; P150,000 for legal fees; stock certification costs of P500,000; initial franchise fee of P1.0 million; initial lease payment of P300,000; and promotional fees of P300,000. formation, the company spent How much is recorded as capitalized organization costs?

towards Company was form accounting fees; P150,000 for legal fees; stock certification costs of P500,000; initial franchise fee of P1.0 million; initial lease payment of P300,000; and promotional fees of P300,000. formation, the company spent How much is recorded as capitalized organization costs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. JPIA Company was formed towards the end of 2022. At the time of formation, the company spent P50,000 for
accounting fees; P150,000 for legal fees; stock certification costs of P500,000; initial franchise fee of P1.0
million; initial lease payment of P300,000; and promotional fees of P300,000.
How much is recorded as capitalized organization costs?

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