Valix Finacc vol 1 Problem 20-17

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-17

1. Rent expense                                                                                   1,200,000

    Prepaid rent                                                                                                1,200,000

            Cash                                                                                                                2,400,000

2. Leasehold                                                                                        2,000,000

            Cash                                                                                                                2,000,000

3. Leasehold improvement                                                                    500,000

            Cash                                                                                                                   500,000

4. Amortization of leasehold                                                                  400,000

            Leasehold (2,000,000 / 5)                                                                                    400,000

                                                                                               

5. Depreciation (500,000 / 5)                                                                  100,000

            Accumulated depreciation                                                                               100,000