On January 1 of this year, Diaz Boutique pays $185,000 to modernize its store. Improvements include new floors, ceilings, wiring, andwall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has 8 yearsremaining on the lease.1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year.No1DateJanuary 01Leasehold improvementsCash2December 31Answer is complete but not entirely correct.General JournalDebit185,000Credit185,000Amortization expense-Leasehold improvementsCash30185,000185,000

Answered: Image /qna-images/answer/075de942-f60b-4529-a5fd-03edefaa5d6d.jpg

Answered: On January 1 of this year, Diaz…

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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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. 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
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On January 1 of this year, Diaz Boutique pays $130,000 to modernize its store. Improvements Include new floors, cellings. wiring, and wall coverings. These Improvements are estimated to yleld benefits for 8 years. Dlaz leases (does not own) Its store and has 5 years remalning on the lease. 1. & 2. Prepare the Journal entry to record the cost of modernization and amortization at the end of this current year. Vlew trannaction lst Journal entry worksheet Record the cost of modemization of the store for $130,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry Vlew general Journal
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