Organizational Costs

Angelou Corporation began operations in 2020. The company provides interior design consulting services. The following expenditures were incurred prior to the start of operations and were paid with cash.

Attorneys 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
Total		$ 33,000

Prepare the journal entries to record the above costs for 2020. All expenditures were paid with cash.

Date	Account	Debit	Credit
MM/DD/2020	Organization Expense	23,000
	Cash		23,000
MM/DD/2020