Find what is amount of interest that crocus capitalize

Assignment Help Accounting Basics
Reference no: EM132829624

On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

July 1, 2020                            4

October 1, 2020                      32

February 1, 2021                      40

April 1, 2021                          26

September 1, 2021                 25

October 1, 2021                      11

On July 1, 2020, Crocus obtained a $80 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31.

Problem 1:
What is the amount of interest that Crocus should capitalize in 2020, using the specific interest method?

Reference no: EM132829624

Questions Cloud

What is the greatest communication challenge for leaders : "What is the greatest communication challenge for leaders; and, how can you as a leader measure the effectiveness of your communication skill?"
Describe your current educational setting : Describe your current educational setting, including the age of children (0-2, 3-5, or 6-8), number of children you work with, and the philosophy of your.
Prepare journal entries to record the transactions : Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends
What aspects are based on kantian ethical theory : With the recent availability of new vaccines that prevent the spread of COVID-19, governments in Canada and around the world have been making difficult decision
Find what is amount of interest that crocus capitalize : On June 1, 2020, the Crocus Company began construction.What is the amount of interest that Crocus should capitalize in 2020, using the specific interest method?
Performance appraisal system : A company of 15 employees has recently decided to overhaul its performance appraisal system.
What are the significant transactions and accounts : What are some of the questions you would have for Michael before accepting his audit plan?
Prepare the financing activities section of the statement : Assume that no ordinary shares was retired during the year and profit was P1,300,000. Prepare the financing activities section of the statement
Describe effects of experiencing cultural discontinuity : Last week, you enriched your "Diversity Profile" with new insights about your family culture. You continue this process as you reflect on another dimension.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the basic earnings per share for junkyard arts

Junkyard Arts, Inc., had earnings of $484,100 for the year. Determine the basic earnings per share for Junkyard Arts for the year

  Prepare the journal entries for perry company

Prepare the journal entries for Perry Company for (a) the initiation of the loan, (b) the recognition of interest expense for the quarter

  Find retained earnings balance and total stockholders equity

Assume that the company declares and immediately distributes a 100%stock dividend. Find the retained earnings balance and the total stockholders equity? and also the shares outstanding.

  What is the assets net present value

At the end of the equipment's life, the salvage value is expected to be $18,000. If Mid-Town's cost of capital is 14 percent, what is asset's net present value

  Chase corp sold 200 1000 65 percent bonds at 105 on march 1

chase corp sold 200 1000 6.5 percent bonds at 105 on march 1 2006. each bond has 10 warrants attached and each warrant

  Discuss a voice consulting service

a voice consulting service. Enter the following transactions for June in T-accounts using + and - to indicate increases

  How much total gross cash inflow should Baloo expect

How much total gross cash inflow should Baloo expect (i.e., the debits to Cash) for a $1,000, 6%, 6-year bond, if it is purchased at $1,050

  Determine the amount received by myers as a final

Prior to liquidating their partnership, Myers and Baird had capital accounts of $22,000 and $30,000, respectively.

  Compute the companys direct labor budget for the upcoming

the production manager of rordan corporation has submitted the following forecast of units to be produced by quarter

  Determine the net present value

Operating the vans will require additional working capital of $30,000, Determine the net present value of the two investment alternatives

  Determining receipt of partnership interest in current year

On July 1 of the current year, the unrestricted partnership interest (fair market value of $25,000) was transferred to Susan. How should Susan treat the receipt of the partnership interest in the current year?

  Journalize the transactions and the adjusting entries

All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Journalize transactions and the adjusting entries

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!

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