Question

R. Wilson Corporation commenced operations in early 2020. The corporation incurred $60,000 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation.

Required:
Prepare journal entries to record the $60,000 expenditure and 2020 amortization, if any.

Answer 1

Dr Organization Expense 60,000

Cr Cash 60,000

Step-by-step explanation:

Based on the information given we were told that the Corporation had commenced operations in early 2020 in which they incurred the amount of $60,000 which means that the journal entries to record the amount of $60,000 expenditure and 2020 amortization, if any will be :

Dr Organization Expense 60,000

Cr Cash 60,000