October 30, 2016 admin

Amortization of Leasehold Improvements

Expenses

AMORTIZATION OF LEASEHOLD IMPROVEMENTS EXPENSE ACCOUNT
8360/8365/8366

ACCOUNT EXPLANATION
Cost of amortizing improvements to leased land and buildings.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly entry to amortize leasehold improvements costs SE
    Amortization of Leasehold Improvements 8360
    Amortization of Leasehold Improvements—Service—QL/FL/QCSC 8365
    Amortization of Leasehold Improvements—Parts—QL/FL/QCSC 8366
      Accumulated Amortization—Leaseholds & Leasehold Improvements 1735
COMMENTS
  • Improvements to leased properties should be amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter.
  • Depreciation of improvements to land owned by the dealership and used in the automobile business should be charged to Account 8340, Depreciation—Buildings & Improvements.
  • For departmentalization information, see Departmentalization.