How to calculate the cost of hotel decoration?

There are two accounting methods for hotel decoration expenses:

1, the decoration cost is low and the construction period is short, which can be included in the management cost. The accounting entries are as follows:

Borrow: management fee-decoration fee

Loans: bank deposits

2. Decoration expenses, with a term of 1 year, can be included in long-term deferred expenses. The accounting entries are as follows:

Borrow: Long-term prepaid expenses-renovation expenses

Loans: bank deposits

Extended data:

1. This account accounts for the expenses that have occurred in the enterprise but should be borne by the current period and subsequent periods, such as the expenditure on improvement of fixed assets leased from operating leases.

Two, this course should be detailed accounting according to the cost of the project.

Three, the enterprise's long-term prepaid expenses, debit the subjects, credit related subjects, credit "bank deposits", "raw materials" and other subjects. Amortize long-term prepaid expenses, debit "management expenses", "sales expenses" and other subjects, and credit this account.

Four, the final debit balance of this course, reflecting the amortized value of long-term prepaid expenses of enterprises.

Expenditures for major repairs of fixed assets that comply with the provisions of the tax law shall be amortized by stages according to the service life of fixed assets.

The expenditure on major repairs of fixed assets mentioned in Item (3) of Article 13 of the Enterprise Income Tax Law refers to the expenditure that meets the following conditions at the same time:

(1) repair expenses reached more than 50% of tax basis when the fixed assets were acquired;

② The service life of fixed assets is extended for more than 2 years after repair.

For the major repair expenses that meet the above two conditions, when incurred, the "long-term deferred expenses" shall be debited and the "raw materials" and "bank deposits" shall be credited; This expenditure is amortized within the service life of fixed assets, debited to the related asset cost or current profit and loss account, and credited to the "long-term deferred expenses" account.

Baidu Encyclopedia-Long-term prepaid expenses