User Account

All Pages

Compute avoidable interest for Pronghorn Company

Assignment Help Financial Accounting
Reference no: EM132764524

Question - Pronghorn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31.

Pronghorn Company borrowed $3,000,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Pronghorn Company. Use the weighted-average interest rate for interest capitalization purposes.

Reference no: EM132764524

Questions Cloud

What actions you take to reduce bank interest-rate risk : If interest rates rise by 50 basis points percentage points from 7% to 7.50%. What actions could you take to reduce the bank's interest-rate risk
What is the current? bid-ask spread for cisco? stock : Suppose the following orders are received by an exchange for Cisco? stock:
Find how much sales revenue did the company earn : Find how much sales revenue did the company earn during the year? A newly established company has the following financial statement figures
Find what gross profit for the company at end of period : Find What is the gross profit for the company at the end of the period? A newly established merchandising company acquires equipment
Compute avoidable interest for Pronghorn Company : Compute avoidable interest for Pronghorn Company. Use the weighted-average interest rate for interest capitalization purposes
Find what was the error : What was the error? An accountant of a firm makes a correction entry for an error in a single transaction in which 10.000 TL has been collected
Find what book value of equipment net of depreciation : The useful life of the equipment is 5 years. What would be the book value of the equipment net of depreciation at the end of the fourth year?
Compute the partnership profit during the year : A and B formed a partnership. If B received total profit sharing of 28,000, compute the partnership profit during the year
Which might be that transaction : Which might be that transaction? Suppose that, in a merchandising firm, the opening balances of total assets and total equity are 50.000 TL

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a three-year schedule of interest revenue

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method.

  Explain the impact of a tax shield on fixed income yields

Utilizing the information from valid sources, briefly compare the coupon rate and the interest rate regarding bonds. What is a par value?

  Show journal entries for admission of smart

Show Journal entries for admission of Smart.- Opening statement of financial position of new business.- Journal entries for writing off the goodwill which the new partners decided to do soon after the start of the new business.

  General fund and special revenue fund examples

This portion of the continuous problem continues the General Fund and special revenue fund examples by requiring the recording and posting of the budgetary entries. To reduce clerical effort required for the solution use control accounts for the budg..

  About our corporate social responsibility in relation

You have recently applied for a position as a graduate with a company in the very competitive retail fashion business. The company sells low cost fashion items in its own branded shops throughout Australia. our company has come under increasing press..

  Produces and sells a single product

Hold Inc. produces and sells a single product. The selling price of the product is $110.00 per unit and its variable cost is $70 per unit.

  What is the cost of goods available for sale

Northwest Fur Co. started 2013 with $100,000 of merchandise inventory on hand. During 2013, $450,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Ass..

  Write a formal business letter to ben

Write a formal business letter to Ben answering their questions and provide specific references to the GAAP Codification sections used to arrive at your answers.

  Prepare implied journal entries relative to bad debt expense

Prepare all implied journal entries relative to bad debt expense and the allowance for uncollectible accounts. Compute the amount of revenue and gross profit.

  Find how much should be willing to pay for the bond

You would like to earn 12% nominal interest (compounded quarterly) per year on this investment. How much should you be willing to pay for the bond?

  What is the unexpected capacity variance

Warner co has budgeting fixed overhead of $150,000. Practical capacity is 6000 units and budgeted production is 5000 units. During February 4,800 units were produced and 155,600 was spent on fixed overhead. What is the unexpected (unplanned) capacity..

  Prepare the calculations on a monthly basis

Allocate the above expenses as fixed, mixed, or variable expenses. Explain why Wilson-West Manufacturing needs to have a product costing system.

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