On January 1 of this year, Diaz Boutique pays $170,000 to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 8 years. Diaz leases (does not own) its store and has 5 years remaining on the lease.1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year.[Button: View transaction list]**Journal Entry Worksheet**Tab 1: Record the cost of modernization of the store for $170,000 cash.*Note: Enter debits before credits.*| Date | General Journal | Debit | Credit ||-----------|---------------------------------------------|---------|---------|| January 01| | | || | | | || | | | || | | | |The table is set up for recording financial transactions, with columns for the date, description of the transaction under "General Journal," and the amounts to be debited or credited. The setup is prepared for entries related to the modernization costs.

In accounting, amortization refers to expensing the acquisition cost minus the residual value of intangible assets in a systematic manner over their estimated "useful economic lives" so as to reflect their consumption, expiry, and obsolescence, or other decline in value as a result of use or the passage of time.

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On January 1 of this year, Diaz Boutique pays $170,000 to modernize its store. Improvements include new floors, ceilings, wiring, an wall coverings. These improvements are estimated to yield benefits for 8 years. Diaz leases (does not own) its store and has 5 year remaining on the lease. 1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year. View transaction list Journal entry worksheet 1 2 Record the cost of modernization of the store for $170,000 cash. Note: Enter debits before credits. Date January 01 General Journal Debit Credit

On January 1 of this year, Diaz Boutique pays $170,000 to modernize its store. Improvements include new floors, ceilings, wiring, an wall coverings. These improvements are estimated to yield benefits for 8 years. Diaz leases (does not own) its store and has 5 year remaining on the lease. 1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year. View transaction list Journal entry worksheet 1 2 Record the cost of modernization of the store for $170,000 cash. Note: Enter debits before credits. Date January 01 General Journal Debit Credit

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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