What Is Journal Entry For Tenant Improvement Allowance?

Entry when Lease is entered into:

DB Cash / AR $XXX,XXX

CR Deferred Rent $XXX,XXX

Entry when tenant improvement is performed:

DB Leasehold Improvements $XXX,XXX

CR Cash $XXX,XXX

Monthly entry to amortize the deferred rent:

DB Deferred Rent $XXX,XXX

CR Rent Expense $XXX,XXX



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