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.Prepare journal entries 1) to record the $60,710 expenditure and 2) 2012 amortization

Answer 1

Explanation:

The journal entries are as follows:

1. Organization expenses A/c Dr $60,710

              To Cash A/c $60,710

(Being the organization expenses are recorded for $60,710)

2. No journal entry is required as no amortization is taken place. The amortization is records when the question is talking about the intangible assets

Note: It is wrongly written that $60,000 cost is incurred instead of $60,710