On January 1 of this year, Diaz Boutique pays $105,000 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 eight years remaining on the lease.
Prepare the journal entry to record the cost of modernization. Record the cost of modernization of the store for $105,000 cash.
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On January 1 of this year, Diaz Boutique pays $105,000 to modernize its store. Improvements include...
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