Crestfield leases office space. On January 3, the company incurs $15,000 to improve the leased office space. These improvements are expected to yield benefits for 4 years. Crestfield has 2 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements? Multiple Choice O O O O Debit Amortization Expense-Leasehold Improvements $7,500; credit Accumulated Amortization-Leasehold Improvements $7,500. Debit Depletion Expense $15,000; credit Accumulated Depletion $15,000. Debit Depreciation Expense $3,750; credit Accumulated Depreciation $3,750. Debit Amortization Expense-Leasehold Improvements $3,750; credit Accumulated Amortization-Leasehold Improvements $3,750. Debit Depletion Expense $7,500; credit Accumulated Depletion $7,500.

Crestfield leases office space. On January 3, the company incurs $15,000 to improve the leased office space. These improvements are expected to yield benefits for 4 years. Crestfield has 2 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements? Multiple Choice O O O O Debit Amortization Expense-Leasehold Improvements $7,500; credit Accumulated Amortization-Leasehold Improvements $7,500. Debit Depletion Expense $15,000; credit Accumulated Depletion $15,000. Debit Depreciation Expense $3,750; credit Accumulated Depreciation $3,750. Debit Amortization Expense-Leasehold Improvements $3,750; credit Accumulated Amortization-Leasehold Improvements $3,750. Debit Depletion Expense $7,500; credit Accumulated Depletion $7,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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