User Account

All Pages

Compute for the average accumulated expenditures

Assignment Help Accounting Basics
Reference no: EM132740353

Question - During 2020 and 2021 Marvick Corporation build a building for its own use. The expenditures on the construction were as follows:

January 1, 2020 P1,100,000

May 1, 2020 480,000

July 1, 2020 640,000

September 1, 2020 360,000

February 1, 2021 540,000

The construction was completed on March 31, 2021. Marvick obtained a construction loan from its bank for P3,200,000 on January 1, 2019. This loan had a 10% annual rate. Marvick's only other outstanding debt during the period January 1, 2020 to March 31,2021S, consisted of two long-term notes. This note has a principal amounts of P3,000,000 and P6,000,000 and annual interest rate of 11% and 12% respectively.

Instructions - Compute for the average accumulated expenditures, interest to be capitalized and total cost of the asset in 2020 and 2021.

Reference no: EM132740353

Questions Cloud

Determine the amount of interest to be capitalized : Interest revenue earned in 2020 from temporary investments of the specific borrowing 40,000. Determine the amount of interest to be capitalized in 2020
Determine equations of the shear and bending-moment curves : Determine the minimum required width b. knowing that for the grade of timber - select the most economical S-shape beam to support the loading
Calculate the effective monthly rent : Given the following information, calculate the effective monthly rent (annual rent based on monthly payments at the start of each month). Lease Term
What types of price discrimination have you experienced : What types of price discrimination have you experienced (for example, out-of-state versus in-state tuition differences, lower ticket prices at movie theaters.
Compute for the average accumulated expenditures : Compute for the average accumulated expenditures, interest to be capitalized and total cost of the asset in 2020 and 2021
Important role in corporate finance : Working capital management has the most important role in corporate finance
Prepare the journal entry to record the equipment : Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,000,000 invoice price
What time management techniques : What time management techniques can you use to accomplish your goal of earning a college degree?
State the charges to statement of comprehensive income : Calculate and state the charges to the statement of comprehensive income for 20X6 and 20X7 if the leases were treated as operating leases

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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