On January 1 of this year, Diaz Boutique pays $205,000 to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has 8 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 $205,000 cash. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal >
On January 1 of this year, Diaz Boutique pays $205,000 to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has 8 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 $205,000 cash. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1 of this year, Diaz Boutique pays $205,000 to modernize its store. Improvements include new floors, ceilings, wiring, and
wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has 8 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 $205,000 cash.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
>
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