What is journal entry for tenant improvement allowance?
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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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