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iris [78.8K]
2 years ago
6

On January 4 of this year, Diaz Boutique incurs a $105,000 cost to modernize its store. Improvements include new floors, ceiling

s, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases its store and has eight years remaining on the lease.
Required : Prepare the entry to record (1) the cost, of moderanization and (2) amortization at the end of this current year.
Business
1 answer:
irina [24]2 years ago
8 0

Answer:

Explanation:

The journal entries are shown below:

1. Modernization cost A/c Dr $105,000

            To Cash A/c $105,000

(Being the cost of modernization is recorded)

2. Amortization of modernization A/c $13,125

           To Modernization A/c $13,125

(Being the amortization is recorded)

The computation of the amortization is shown below:

= Modernization cost ÷ remaining life

= $105,000 ÷ 8 years

= $13,125

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8 0
2 years ago
Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the produc
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Answer:

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Explanation:

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Operating Loss = $22,000 ($63,000 - 85,000)

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3 years ago
Kate is a florist. Kate can arrange 20 bouquets per day. She is considering hiring her husband William to work for her. Together
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Answer:

(d) 15 bouquets

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3 years ago
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Answer:

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Hope this helps!

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