How much interest should be capitalized

Assignment Help Financial Accounting
Reference no: EM132988260

Problem 1: Wednesday Corporation built a P5,000,000 asset in 2021. The total weighted average expenditures were P3,000,000. To assist with construction, a P2,200,000 loan at 10% was obtained on Jan. 1, 2021, and funds not required for construction were temporarily invested in short-term securities generating and interest revenue of P50,000. Aside from the borrowed construction funds, the only other debt outstanding over the year was a P2,500,000, 10-year, 12% note payable dated Jan. 1, 2018. How much interest should be capitalized in 2021?

Reference no: EM132988260

Questions Cloud

Find three management standards : If you were unsure of how best, to apply the processes in ISO AS/NZS 9001:2016, what other standards might you consult to assist you? and also mention three man
What interest earned on temporary investments should be : Pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be
Building block of competitive advantage : Which of the following is NOT a widely accepted building block of competitive advantage?
Identify the nature and degree of main stakeholders : Identify the nature and degree of main stakeholders' interests, and implications of conflicting interests
How much interest should be capitalized : How much interest should be capitalized in 2021? To assist with construction, a P2,200,000 loan at 10% was obtained on Jan. 1, 2021
Reflect upon your career path : Reflect upon your career path. Where are you on your career journey? What have you learned from your past experiences?
Calculate the amount that should be recognized as a loss : Calculate the amount that should be recognized as a loss as a result of the grant repayment in 2021. Calculate the grant income for 2019.
Possible about food safety program : Tell us as much as possible about your Food Safety Program at your workplace. Including, where did your business get the food safety program?
What the weighted-average accumulated expenditures are : What the weighted-average accumulated expenditures are? The Monday Corporation is erecting building. Construction started on January 1 and ended on December 31.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the team safety margin in sales dollars would be

What the team's safety margin in sales dollars would be? Fixed costs, including player salaries and operating expenses, total $1.2 million for the season.

  Pretax earnings increase from this lease

On December 31, 2013, Corporation A leased equipment to Company B for a five-year period. The annual lease payment, excluding executory costs is $42,000. The interest rate for this lease is 10%. The payments are due on December 31 of each year. For t..

  The ending inventory and the cost of goods sold

Alyse Designer Handbags had the following inventory figures for its Nicole Model during 2013 as shown below. # Units Unit cost Beginning Inventory 36 15 Purchases 1 20 16 2 25 16 3 30 14 4 36 15 Ending Inventory 15 What is the cost of the ending inve..

  How accounts receivable and allowance for doubtful accounts

On September 30, Emerson Co. has $540,250 of accounts, Show how Accounts Receivable and Allowance for Doubtful Accounts appear on its October 31 balance sheet.

  Make journal entry to record each of preceding transaction

Prepare journal entries to record each of the preceding transactions. Assume a perpetual inventory system. Evenflow had the following transactions for October

  How much could barons sales increase

Fixed assets that used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed asset

  Muhs corporation

Akers Company, a 100% owned subsidiary of Muhs Corporation, sells inventory to Muhs at a 30% profit on selling price.

  Prepare journal entries for douglas company transactions

Prepare journal entries for each of the following transactions. Assume that the transactions occur in the order given. Douglas resells 1,000 shares for $36.

  What amount clay report as capitalized interest at dec

The total amount of interest incurred by Clay during 2010 was $102,000. What amount should Clay report as capitalized interest at December 31, 2010?

  How much is the amount of the loss on repossession

How much is the amount of the loss on repossession? An used article was accepted as downpayment and the balance on a monthly installment payment starting Nov

  Evaluate for the amount of cash received from the assignment

The December collections of assigned accounts, Compute for the amount of cash received from the assignment of accounts receivable on December 1, 2020.

  What is the amount of total manufacturing cost

Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. What is the amount of total manufacturing cost

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