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Fontenot Corporation was organized in 2009 and began operations at the beginning of 2010. 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 the organization of the company $16,838Purchase of drafting and design equipment 12,588Costs of meetings of incorporators to discuss organizational activities 6,964State filing fees to incorporate 1,022
Total $37,412
(a) Compute the total amount of organization costs incurred by Fontenot.
(b) Prepare the journal entry to record organizational costs for 2010.
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