User Account

All Pages

How much interest is capitalized

Assignment Help Financial Accounting
Reference no: EM132867204

Problem 1: On January 1, 2020 there is a P300,000 balance in Construction in progress-building account. Included in that balance is P60,000 of interest capitalized in the first two years of the construction. Construction expenditures during the year 2020 were P800,000 which were incurred evenly throughout the entire year. The company has had over P3,000,000 in interest-bearing debt outstanding in 2020, at a weighted average rate of 9%. How much interest is capitalized in 2020?

a. P36,000
b. P63,000
c. P93,600
d. P99,000

Reference no: EM132867204

Questions Cloud

Setting and achieving goals : Discuss two types of planning that organizations use to assist in the achievement of goals.
What amount should the new equipment be recorded : ABC Co. agreed to pay P52,000 in cash for the exchange in addition to giving up the used equipment. At what amount should the new equipment be recorded?
What is balance of cost of goods sold after closing variance : Assuming the credit balance of factory overhead is closed to cost of goods sold, what is the balance of cost of goods sold after closing the variance
Explain contrasts in business strategy : Samsung's business model has focused on vertically integrating supply chains and ramping up production volume, while Apple has made a business strategy
How much interest is capitalized : The company has had over P3,000,000 in interest-bearing debt outstanding in 2020, at a weighted average rate of 9%. How much interest is capitalized in 2020?
What are the typical networks for most organizations : What are the typical networks for most organizations and what are the future networks for organizations?
Determine the cost of materials backflushed from FG to COGS : Raw materials purchased on account is P325,000. Determine the cost of materials backflushed from FG to COGS
Explain the industries dominant economic traits : Maembe Industries Limited has been in existence for the past twelve years. In the first seven years of its existence it enjoyed a large market size and customer
What the cost of constructed building on december must be : What the cost of constructed building on December 31, 2020 must be? The company began a self-construction of a building on January 1, 2020 and was completed

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the march journal entry to record payment

Prepare the march 15, 2016 journal entry to record payment to the receiver general for Canada for the Feb statutory payroll dedications

  Compute the simple rate of return for an investment

Cardinal Company is considering a project that would require a $2,875,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,00..

  Calculate the value of a bond that matures in eleven years

alculate the value of a bond that matures in 11 years and has a $1,000 par value. The annual coupon interest rate is 15 percent

  Compute the amount of the aftertax income

Kelly Bottling is in a 34 percent tax bracket, with dividends taxed at 15 percent. Compute the amount of the aftertax income

  Cash method taxpayer-deduction for taxes

Dawn, a single, cash method taxpayer, paid the following in the current year: Item Amount Federal income tax (employer withheld) $5,400 State income tax (employer withheld) 2,000 FICA (employer withheld) 3,800 Sales tax on a new car 600 License for n..

  Prepare and post the closing entries for may

Prepare and post the closing entries for May, 2014. Start with Page 4 of the General Journal for the closing entries. Prepare a post-closing trial balance as of May 31, 2014, for Bill's Lawn Care.

  Cadence retailers

transactions were selected from among those completed by Cadence Retailers

  Determine the amount of gross working capital

Joe Fellows is attempting to categorize, List accounts classified as current assets and as current liabilities. Determine the amount of gross working capital

  The apple financial statement

The Apple financial statement calculate averages on the balancesheet

  ACCM4300 Financial Reporting Assignment

ACCM4300 Financial Reporting Assignment Help and Solution, Kaplan Business School - Assessment Writing Service

  Discuss in relation to the efficient market hypothesis

"A positive NPV indicates a project is expected to give a return greater than the market requires." Discuss in relation to the efficient market

  Assuming effective-interest amortization is used

On January 1, 2014, Tonika Corporation issued a seven-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,479 based on an 8% effective interest rate. Assuming effective-interest amortization is used, the ..

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