October 30, 2016 admin

Leaseholds & Leasehold Improvements—Cost

Assets

LEASEHOLDS & LEASEHOLD IMPROVEMENTS—COST ASSET ACCOUNT
1730

ACCOUNT EXPLANATION
Cost of improvements and additions leased to property used in the automobile business. Includes lump-sum payments made to acquire a lease, excluding amounts applicable to rent.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Modernization of facade of leased showroom on open account P
    Leaseholds & Leasehold Improvements 1730
      Accounts Payable—Trade 2100
COMMENTS
  • Leasehold improvements generally cannot be removed from the property and usually become the property of the lessor at the expiration of the lease.
  • Subsidiary records should be maintained to support this account showing: date, description of leasehold improvement, vendor name, expected useful life, cost and monthly amortization amount.