User Account

All Pages

Determine the interest capitalized at the end of December

Assignment Help Financial Accounting
Reference no: EM132858595

Question - On January 1, 2018, the TED Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on June 30, 2019.

Expenditures on the project were as follows:

January 3, 2018 P500,000

March 31, 2018 600,000

June 30, 2018 800,000

October 31, 2018 600,000

January 31, 2019 300,000

March 31, 2019 500,000

May 31, 2019 600,000

On January 3, 2018, the company obtained a P2 million construction loan with a 10% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included a long-term note of P5,000,000 with an 8% interest rate, and a mortgage of P3,000,000 on another building with an interest rate of 6%. Both debts were outstanding during all of 2018 and 2019. The company's fiscal year end is December 31.

Required -

1. Determine the interest capitalized at the end of December 31, 2018?

2. Determine the interest capitalized at the end of December 31, 2019?

3. Determine the total cost of the Building at December 31, 2019?

4. Determine the total interest expense at the end of December 31, 2018?

5. Determine the total interest expense at the end of December 31, 2019?

Reference no: EM132858595

Questions Cloud

Optimistic about the session and the company future : Kirk was generally optimistic about the session and the company's future until the consultant started talking about the new manufacturing plant
Why are databases important to business : Why are databases important to business? How do databases generate sales and profits? What databases are most interacted with, and how do they benefit people?
Compute the correct taxable income for Mr Chua : The Income Tax Return of Mr. Chua for taxable year 2019, reported a taxable income of P520,240. Compute the correct taxable income for Mr Chua
What is meant by relatively robust outliers : You mention the factors surrounding Spearman's. What is meant by relatively robust outliers?
Determine the interest capitalized at the end of December : On January 3, 2018, the company obtained a P2 million construction loan with a 10% interest rate. Determine the interest capitalized at the end of December
Develop an efficient reporting department : The company should develop an efficient reporting department to ensure any complaint received is immediately looked into and responded to build an exceptional
Information systems functionalities in claims management : -Describe information systems functionalities in claims management and member services maintained by Managed Care Organizations (MCOs).
How have they adapted in face of such extreme restrictions : -How have these measures impacted Hello Fresh? -How have they adapted in the face of such extreme restrictions?
Five-step process for developing an e-commerce site : Describe the key factors managers need to consider when planning the development of their e-commerce systems.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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