On July 1 of the Current Year,Timberlake Company Signed a Contract

Essay

On July 1 of the current year,Timberlake Company signed a contract to sublease space in a building for 7 years.Timberlake Company paid $56,000 for the right to sublease this space.After taking possession of the leased space,Timberlake pays $140,000 for improving the office portion of the lease space.The improvements are paid on July 6 of the current year,and are estimated to have a useful life equal to the 14 years remaining in the life of the building.Prepare entries for Timberlake to record (a)its payment for the right to sublease the building space, (b)its payment for the office improvements, (c)the December 31 year-end entry to amortize the cost of the sublease, (d)the December 31 year-end entry to amortize the office improvements.