E12-8B (Accounting for Organization Costs) Thermo Corporation was organized in 2013 and began operations at the beginning of 2014. The company is involved in energy development. The following costs were incurred prior to the start of operations. Costs of

E12-8B (Accounting for Organization Costs) Thermo Corporation was organized in 2013 and began operations

at the beginning of 2014. The company is involved in energy development. The following costs were incurred prior to the start of operations.

Costs of meetings of incorporators to discuss

    organizational activities                                                      $ 17,000

Attorney’s fees in connection with organization of the

    company                                                                               26,000

Purchase of testing equipment                                                 61,000

Costs of meetings with potential customers                              3,000

State filing fees to incorporate                                                   1,000

                                                                                             $108,000

Instructions

(a) Compute the total amount of organization costs incurred by Thermo.

(b) Prepare the journal entry to record organization costs for 2014.