E12.15 (LO 5) (Accounting for Organization Costs) Angelou Corporation was organized in 2019 and began operations...
E12.15 (LO 5) (Accounting for Organization Costs) 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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E12.15 (LO 5)
(Accounting for Organization Costs) Angelou
Corporation was organized in 2019 and began operations...
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