Sand Dollars Corporation is "the premier roaster, marketer and retailer of specialty coffee in the world, operating in75countries" with over 27,000 company-operated and licensed stores worldwide. Assume that Sand Dollars planned to open a new store on Commonwealth Avenue near Boston University and obtained a 21-year lease starting January 1. The company had to renovate the facility by installing an elevator costing $1,102,500. Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements. The elevator will be amortized over the useful life of the lease.

Required:

1. & 2.Prepare the journal entry to record the installation of the new elevator and any adjusting entries required at the end of the annual accounting period on December 31 related to the new elevator.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet Record the installation of the new elevator. Note: Enter debits before credits. January 01 Record entry Clear entry View general journal Journal entry worksheet Record the adjusting entry on December 31 (if necessary), related to the new elevator. Note: Enter debits before credits. December Record entry Clear entry View general journal