Chapter 12: Q12-11BE (page 638)
Question: R. Wilson Corporation commenced operations in early 2017. The corporation incurred \(60,000 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the \)60,000 expenditure and 2017 amortization, if any.
Short Answer
Answer
Debited organization expense by $60,000 and credited cash account by the same amount