wiring, and wall coverings. These improvements are estimated to yleld benefits for 8 years. Diaz leases (does not ownj 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.
wiring, and wall coverings. These improvements are estimated to yleld benefits for 8 years. Diaz leases (does not ownj 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.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 63P
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F03294099-99a2-4d06-9d65-98c0b0f1c9ac%2Fcjp70xv_processed.png&w=3840&q=75)
Transcribed Image Text: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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