10-15 Intangible assets and amortization LO P4

QS 10-15 (Algo) Intangible assets and amortization LO P4 On January 1 of this year, Diaz Boutique pays $165,000 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 modemization and amortization at the end of this current year View transaction list Journal entry worksheet 1 2 2 Record the cost of modernization of the store for $165,000 cash. Note: Enter debits before credits General Journal Debit Credit Date January 01 Record entry Clear entry View general journal Journal entry worksheet 2 Record the year-end Sajusting entry for the amortization expense of the leasehold improvements. Note: Enter debits before credits: General Journal Debit Credit Date December 31 Record entry Clear entry View Deneral Journal