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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Please help me to answer the question with supporting computation
50) 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 10 years. Crestfield has 5 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements? A) Debit Amortization Expense-Leasehold Improvements $1,500; credit Accumulated Amortization Leasehold Improvements $1,500. B) Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000. C) Debit Depreciation Expense $1,500; credit Accumulated Depreciation $1,500. D) Debit Depletion Expense $15,000; credit Accumulated Depletion $15,000. E) Debit Amortization Expense-Leasehold Improvements $3,000; credit Accumulated Amortization Leasehold Improvements $3,000.
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Maynard Printers (MP) manufactures printers. Assume that MP recently paid $450,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years. Read the requirements Requirement 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a) Record the purchase of the patent. Date Accounts and Explanation Debit Credit (b) Record the amortization for the first full year. Date Accounts and Explanation Debit Credit Requirement 2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with Year 5, to amortize the remaining cost of the patent over…

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