Fontenot SA was organized in 2018 and began operations at the beginning of 2019. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations.
Attorney's fees in connection with organization of the company...........€17,000
Purchase of drafting and design equipment.....................................10,000
Costs of meetings to discuss organizational activities...........................7,000
Government filing fees for company start-up....................................1,000
.......................................................................................€35,000
Instructions
a. Compute the total amount of organization costs incurred by Fontenot.
b. Prepare the journal entry to record organization costs for 2019.