Brick Oven Corporation made the following expenditures during the first month of operations:

Attorneys' fees to organize the corporation $8,000
Purchase of a patent 30,000
Legal and other fees for transfer of the patent 2,000
Advertising 70,000
Total $110,000

Required:
Record the $110,000 in cash expenditures.

The answer is given below;

Explanation:

Patent ($30,000+$2,000)               Dr.$32,000

Advertising Expense                       Dr.$70,000

Legal Fees Expense                        Dr.$8,000  

Cash                                                  Cr.$110,000  

Please note that purchase cost of patent and legal fees paid for the transfer of patent are capital expenditures, therefore they are capitalized.

Where as the advertising and attorney's fee are revenue expenditures.            

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.