AE12-8 - (b Prepare the journal entry to record...

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AE12-8 Correct. (Accounting for Organization Costs) Fontenot Corporation was organized in 2009 and began operations at the beginning of 2010. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations. Attorney's fees in connection with the organization of the company $16,829 Purchase of drafting and design equipment 10,483 Costs of meetings of incorporators to discuss organizational activities 5,374 State filing fees to incorporate 1,999 $34,685 (a) Compute the total amount of organization costs incurred by Fontenot. $ 24,202
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Unformatted text preview: (b) Prepare the journal entry to record organizational costs fo Account/Description Debit Organization cost expense 24,202 Cash(Payables) AE12-8 (a) Attorney's fees in connection with organization of the company $16,829 Costs of meetings of incorporators to discuss organizational activities 5,374 State filing fees to incorporate 1,999 Total organization costs $24,202 Drafting and design equipment, $10,483, should be classified as part of fixed assets, rather than as organ (b) Account/Description Organization cost expense Cash (Payables) (To record organizational expense.)...
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This note was uploaded on 11/30/2011 for the course ACC 101 taught by Professor B during the Spring '09 term at CUNY Baruch.

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