How much the interest would be capitalized

Assignment Help Financial Accounting
Reference no: EM132934789

Question - GG Corp had the following loans outstanding during 2021 and 2022 Specific loan for construction @ 10% P 3,000,000

General borrowings @ 12% 25,000,000

The entity began the self-construction of a new building on Jan 1, 2021 and the building was completed on June 30, 2022

The following expenditure was made in 2021 and 2022:

Jan 1, 2021 P 4,500,000

April 1, 2021 5,000,000

Dec 1, 2021 3,000,000

March 1, 2022 6,000,000

Required -

1. How much the interest would be capitalized in 2021?

2. How much is the cost of the new building?

Reference no: EM132934789

Questions Cloud

Determine conversion cost incurred : Overhead is applied at $12 per direct labor hour. Factor overhead incurred 40,600. For the month of April, determine conversion cost incurred
How much will she have to invest today : If Sarah can invest in a fund that pays 6.40 percent annual interest, compounded quarterly, how much will she have to invest today
What is the value of the deferred annuity as of today : J. Johnson receives a defined retirement benefit, which commences in 6 years. What is the value of the deferred annuity as of today
What is the partnership profit : During 2017, Ian contributed land with a fair value of P 60,000. Also during 2017, he had drawings of P 80,000. What is the partnership profit
How much the interest would be capitalized : The following expenditure was made in 2021 and 2022: Jan 1, 2021 P 4,500,000. How much the interest would be capitalized in 2021
How much would it cost to take over : Its market-to-book ratio is 4.2, its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it cost to take over
Find the characteristics of the plants of strain : Increasing the efficiency of photosynthesis is one way to increase crop yield and help to feed human populations. One enzyme vital to the Calvin-Benson cycle of
Describe three environmental problems : Name and describe three environmental problems associated with the various types of surface mining.
Translate the portion of the myostatin gene : Transcribe and translate the portion of the myostatin gene. Assume the bottom strand is the template strand with the understanding that the promoter region in t

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the capital balance of the remaining three partners

Assume that the partners share profits and losses 4:3:2:1, respectively. Pnda retires and is paid $305,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partn..

  Prepare multiple-step income statement

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): Prepare a multiple-step income statement for 2016. Ignore EPS dis..

  Prepare the statement of financial position as at september

Prepare the statement of financial position as at 30 September 2018 to comply with the requirements of the Companies Act 71 of 2008 and IFRS.

  Classify the various phases of the mouse poison project

Eradication Laboratories Ltd is undertaking a number of research and development projects, one of which is described below.

  Estimate the value at the end of the third

If the firm's cost of capital is 10% and you expect the firm's current return on capital to continue in perpetuity, estimate the value at the end of the third

  How much of these amounts is taxable

The corporation owns five percent of the stock of the company paying the dividends. Based on these facts, how much of these amounts is taxable?

  Journalize the transactions for gwynne supply

Gwynne Supply Co. has the transactions related to notes receivable during the last 2 months-Journalize the transactions for Gwynne Supply Co.

  What do the regulator execute with the guide of regulator

How many promoting and advertising costs does Huntington Corporation pay? What do the regulator execute with the guide of the regulator?

  Find What is first payment

Find What is first payment? One month from today, you begin paying back your $60,000 student loan, which pays a constant monthly rate.

  Why do bond prices go down when interest rates go up

Why do bond prices go down when interest rates go up? Don't lenders like high interest rates and what coupon rate would they have to pay in order to sell at par if they paid their coupons anually?

  How many defective units from this year sales

How many defective units from this year's sales does Sound Company estimate will be returned for repair

  What steps are involved in planning the costing framework

What steps are involved in planning the costing framework, how much time should be expended on account review?

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