Reference no: EM132498192
Question - On December 31, 2020, Pronghorn Inc., a public company, borrowed $2 million at 12% payable annually to finance the construction of a new building. In 2021, the company made the following expenditures related to this building structure (unless otherwise noted): March 1, $525,000; June 1, $630,000; July 1, $1.5 million (of which $441,000 was for the roof); December 1, $1.5 million (of which $736,000 was for the building HVAC).
Additional information follows:
1. Other debt outstanding: $4-million, 10-year, 13% bond, dated December 31, 2013, with interest payable annually $1.4-million, six-year, 9% note, dated December 31, 2017, with interest payable annually.
2. The March 1, 2021 expenditure included land costs of $153,000.3.Interest revenue earned in 2021 on the unused idle construction loan amounted to $45,200.
Determine the interest amount that could be capitalized in 2021 in relation to the building construction.
Prepare the journal entry to record the capitalization of borrowing costs and the recognition of interest expense, if any, at December 31, 2020.
|
What dakar should record as a result of the conversion
: The total unamortized bond premium at the date of conversion was $210,000. Using the book value method, Dakar should record, as a result of this conversion
|
|
Curriculum in art that accommodates diverse learners
: Why it is important to have a curriculum in art that accommodates diverse learners?
|
|
What is the amount of depreciation expense
: A fixed asset was purchased for $75,000. The residual value is $5,000. What is the amount of depreciation expense that should be recorded for the first
|
|
Impact of one architect of the 20th
: Identify and describe the impact of one architect of the 20th and/or 21st century whom you consider a major technical
|
|
Prepare the journal entry to record the capitalization
: Prepare the journal entry to record the capitalization of borrowing costs and the recognition of interest expense, if any, at December 31, 2020
|
|
Prepare the worksheet entries required for the consolidation
: Under these circumstances, prepare the worksheet entries required for the consolidation of Monica Company and Young Company
|
|
Make a complaint about a worker
: A person tells you they do not want to make a complaint about a worker because they are scared of that worker and how they might react. What should you tell the
|
|
What intra-entity gross profit in inventory existed
: At December 31, 2018, Pitino owes Brey $24,000 for inventory acquired during the period. What intra-entity gross profit in inventory existed as of January
|