Freitas Corporation was organized early in 2011. The following expenditures were made during the first few months of the year:
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Attorneys' fees in connection with the organization of the corporation
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$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 furniture
|
30,000
|
|
Pre-opening salaries
|
40,000
|
|
Total
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$107,000
|
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.