1.Freitas Corporation was organized early in 2013. 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 furniture ........................... 30,000
Pre-opening salaries .......................... 40,000
Total ................................$107,000
Required:
Prepare a summary journal entry to record the $107,000 in cash expenditures.