Question - Novak Corporation was organized in 2016 and began operations at the beginning of 2017. 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 - $16,100
Purchase of drafting and design equipment - 11,100
Costs of meetings of incorporators to discuss organizational activities - 6,000
State filling fees to incorporate - 2,000
$35,200
Required -
Compute the total amount of organization costs incurred by Novak.
Prepare the journal entry to record organization costs for 2017.