Angelou Corporation was organized in 2016 and began operations at the beginning of 2017. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations.
Attorney fees in connection with organization of the company................$15,000
Purchase of drafting and design equipment........................................10,000
Costs of meetings of incorporators to discuss organizational activities..........7,000
State filing fees to incorporate.........................................................1,000
$33,000
Instructions
(a) Compute the total amount of organization costs incurred by Angelou.
(b) Prepare the journal entry to record organization costs for 2017.