Freitas Corporation was organized early in 2018. 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 equipment ...................................................................... 30,000
Pre-opening salaries and employee training .............................................. 40,000
Total............................................................................................$107,000
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.