Freitas Corporation was organized early in 2011. 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 furniture |
30,000 |
Pre-opening salaries |
40,000 |
Total |
$107,000 |
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.