Chapter 10, Problem 10.33E

Intangibles; start-up costs

• LO10–1, LO10–8

Freitas Corporation was organized early in 2018. 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 equipment	30,000
Pre-opening salaries and employee training	40,000
Total	$107,000

Required:

Prepare a summary journal entry to record the $107,000 in cash expenditures.