The answer & explanation for this question is given in the attachment below.
Answer:
C
Explanation:
you don't want to do A or b so with that it can't be D
Answer:
Dr Organization costs ($12,000 + $3,000) 15,000
Dr Patent ($20,000 + $2,000) 22,000
Dr Equipment 30,000
Dr Preopening expenses 40,000
Cr Cash 107,000
Explanation:
Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.
Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.
Answer:
The answer is (A) Expenses for the year exceeded revenues.
Explanation:
If retained earnings decreased during the year, and no dividends were paid this would mean the company would have made a loss in the financial period. A loss occurs when expenses for the year exceed revenues.
