15. Sand Dolars Corporation is the eading rcaster and retailer cf spccialty coff

Question

15. Sand Dolars Corporation is the eading rcaster and retailer cf spccialty coffee, with nearly 17,000 company-cperated and licensed stores worldwide. Assume that Sand Dollars planned to cpen a new store on Commonwealth Avenue near Boston University and obtained a 24-year lease starting January 1. The company had to renovats the facility by installing an elevator costing $1,116,000. Amounts spent to enhance leased property are capitalzed as intang ble assets caled Leasehcld Improvements. The lovalo will bamortized over the useful life of the lease y had to renovate the facility by installing an elevato 1.& 2. Prepare the journal entry tor select "No journal entry required" in the first account field.) e ord h ns alla lon u he new Blevator and any adjusting entries requi red at he end o he annual acuun ng penod on Decembel J ?elated o he new eleva o no en y is required or a ransaction event View transaction list Journal entry worksheet Record the installation of the new elevator Note: Enter debits beforc credits. Date GeneralJ Debit Credit January 01 Record entry Clear entry View general journal

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. 1 1-Jan Leasehold Improvements    1,116,000.00     Cash    1,116,000.00 (To record the lease taken) 2 31-Jan Amortization Expense          46,500.00 $1,116,000 / 24 Years     Leasehold Improvements          46,500.00 (To record the amortization expense)

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