QS $8-15($Algo$)$ Intangible assets and amortization LO P$4$

$5\mathrm{.}56$

points

On January $1$ of this year, Diaz Boutique pays $$120,000$ to modernize its store. Improvements include new floors, ceilings, wiring, and

wall coverings. These improvements are estimated to yield benefits for $8$ years. Diaz leases $($does not own$)$ its store and has $5$ years

remaining on the lease.

& $2.$ Prepare the journal entry to record the cost of modernization and amortization at the end of this current year.

Journal entry

worksheet

Record the cost of modernization of the store for $$120,000$ cash.

Note: Enter debits before credits.