User Account

All Pages

Calculate the amount of interest capitalized for the year

Assignment Help Accounting Basics
Reference no: EM132527535

Question - A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $550,000; March 31, $650,000; June 30, $450,000; October 30, $750,000. To help finance construction, the company arranged a 8% construction loan on January 1 for $800,000. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 10%, respectively.

With the assumption the company uses the specific interest method, calculate the amount of interest capitalized for the year.

Reference no: EM132527535

Questions Cloud

ICT 101 Discrete Mathematics for IT Assignment : ICT 101 Discrete Mathematics for IT Assignment Help and Solution, King's Own Institute - Assessment Writing Service - identify any problem in the algorithm
Compute annual depreciation for the first and second years : Ermler Company purchased a machine at a cost of $80,000. Compute annual depreciation for the first and second years using the Double-declining-balance method
What the budgeted amount of contribution margin : What the budgeted amount of contribution margin for 22,000 units would be?Based on a predicted level of production and sales of 24,000 units
Exchange rates of the euro relative to the pound : Suppose David, a trader at the foreign exchange desk of Goldman Sachs in London, observes the following exchange rates of the euro relative
Calculate the amount of interest capitalized for the year : With the assumption the company uses the specific interest method, calculate the amount of interest capitalized for the year
Present short-term interest rates in the interbank market : Present short-term interest rates (annualized) in the interbank market are as follows:
Determine the dealership sales price variance for the month : The budget for the month was to sell 12 cars at an average price of $15,200. Compute the dealership's sales price variance for the month.
Write down the important formulas : During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow
Repeat the journal entry for the December transaction : Repeat the journal entry for the 18 December 2016 transaction, assuming that Watts Ltd uses the direct write-off method of accounting for bad debts

Reviews

Write a Review

Accounting Basics Questions & Answers

  Revenue recognition principle heartstrings gift shoppe

revenue recognition principle heartstrings gift shoppe sells an assortment of gifts for any occasion. during october

  What is the minimum price amy should accept

During the past year, Amy McGill planted a new vineyard on 150 acres of land that she leases for $30,250 a year. What is the minimum price Amy should accept?

  How has tax law developed in the united states

How has tax law developed in the United States? Has there always been a tax on income

  The following data are taken from the comparative

The following data are taken from the comparative balance sheets of Bundies Billiards Club, which prepares its financial statements using the accrual basis of accounting.

  Make blue spruce journal entry for impairment of goodwill

The Johnson Division's net assets, including the goodwill, Make Blue Spruce journal entry for impairment of the goodwill

  How does depletion affect the balance sheet

How does depletion affect the balance sheet and income statement? Why is depletion accounted for in a manner that differs from depreciation and amortization?

  Estimated residual value after 50 months is 1180 the

brecker company leases an automobile with a fair value of 10906 from emporia motors inc. on the following

  Prepare the journal entries to record the transactions

Gabrial Ltd. was incorporated on February 1, 2014 and is authorized to issue an unlimited number of preferred and common shares. Prepare the journal entries to record the above transactions

  Zimt ag presents its financial statements

Zimt AG presents its financial statements in accordance with US GAAP. In 2007, Zimt discloses a valuation allowance of $1,101 against total deferred tax assets of $19,201. In 2006, Zimt disclosed a valuation allowance of $1,325 against total defer..

  What are advantages and disadvantages of each cost method

Based on your Phase 3 Individual Project submission, explain what you learned about the discretionary cost method and the engineered-cost method.

  What is the materials price and quantity variance

High Sounds manufactures wind chimes that have a standard material cost of 2 pounds of raw materials at $1.50 per pound. During March, 10,000 pounds of raw materials costing $1.55 per pound were used in making 4,800 wind chimes. What is the (1) ma..

  How much withholding or estimated payments must greg pay

How much withholding or estimated payments must Greg pay for 2018 to prevent an underpayment penalty

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd