# You are an accountant working for a company that has recently decided to incorporate. The company has incurred \$4,300 for attorney’s fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 14, Problem 1EA
Textbook Problem
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## You are an accountant working for a company that has recently decided to incorporate. The company has incurred \$4,300 for attorney’s fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?

To determine

Introduction:

Journalising refers to the process of recording transactions in the books of accounts by debiting and crediting accounts, along with an explanation given for the transaction.

To prepare:

Recording of journal entry.

### Explanation of Solution

Journal entry for recording expenses of incorporation are given below:

...
 Date Account Debit (\$) Credit (\$) March 13 Organization cost expense 4,300 Cash

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