Ayayai Corporation commenced operations in early $2025.$ The corporation incurred $$40,000$ of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation.

Prepare journal entries to record the $$40,000$ expenditure and $2025$ amortization, if any. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

depreciation $$

$$

$($To record costs incurred$)$

Debit

$$

$$

$$