when some shops open, there will always be large and small expenses, and the decoration fee is one of them. So how to compile the specific accounting entries of store decoration expenses?
Accounting entries for the decoration expenses of the store
1. If it is a simple decoration, it should be included in the current expenses
Debit: management expenses-decoration expenses
Loan: bank deposit
2. If it is a large expenditure, Then:
Borrow: long-term prepaid expenses-decoration expenses
Loan: bank deposit
3. Handling of accounting entries for amortization after completion:
Borrow: management expenses-decoration expenses
Loan: long-term prepaid expenses-decoration expenses
4. Supporting decoration of new buildings, Decoration expenses, if the amount is large, should belong to fixed assets
Borrow: construction in progress
Loan: bank deposit
5. Handling of accounting entries when put into use:
Borrow: fixed assets
Loan: construction in progress
Long-term deferred expenses refer to various expenses that the enterprise has spent, but the amortization period is over 1 years (excluding 1 years). The loan interest and rent that should be borne by the current period shall not be used as long-term prepaid expenses.
factory renovation fee entry
generally speaking, renovation takes a long time, so all the expenses are paid in advance according to the completion schedule as agreed in the contract. The old accounting system stipulated that the prepaid expenses should be recorded in the
deferred expenses
account within one year, but now the new accounting standards stipulate that the prepaid expenses should be recorded in the
prepaid accounts
account within one year, and the amortization method is the same as before.
Borrow: prepaid account-factory building renovation fee
Loan: bank deposit
If the prepaid fee exceeds one year and the amount is large, it is included in the long-term deferred expenses
Borrow: long-term deferred expenses-renovation fee
Loan: bank deposit
amortization after completion
Borrow: management fee-renovation fee.