Record the amount of interests that can be capitalized

Assignment Help Financial Accounting
Reference no: EM132809166

On January 1, 2018, an entity acquires a parcel of land for $300,000. The amount was entirely borrowed from the bank at an annual interest rate of 4%. The land was ready for its intended use on May 31, 2018. For simplicity, let's assume that the entity paid only the interests, no capital, on this debt during the whole year.

Problem 1: Calculate and record the amount of interests that can be capitalized

Reference no: EM132809166

Questions Cloud

Time series are particularly useful to track variables : Time series are particularly useful to track variables such as revenues, costs, and profits over time.
What maximum profit is : If there are 100 potential customers of each type, and the restaurant must charge the same price to all customers, its maximum profit is
Strengths and weaknesses of the on-the-job training : When TPK, an manufacturer of small appliances - electric kettle, toasters, and irons - automated its warehouse, the warehouse crew was reduced
Major changes made to tax provisions by act : What are the major changes made to the tax provisions by the Act? How have the changes in taxes affected you personally?
Record the amount of interests that can be capitalized : Calculate and record the amount of interests that can be capitalized. The amount was entirely borrowed from the bank at an annual interest rate of 4%.
Trends that impact multinational enterprises : Feb 18. Trends There are 5 trends that impact multinational enterprises (MNEs), which are:
Articles of employee training : You are required to get 5 articles of Employee Training. If you choose, the topic is on training or performance appraisal, choose the same topics of your articl
Journalize the payment of the bond interest on january : January 1, 2022, after paying interest. Crane calls bonds having a face value of $215,000. The call price is 106. Record the redemption of the bonds.
Why are strategic planning important for a modern : Why are strategic planning important for a modern healthcare organization?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Capital and retained earnings

Define the terms paid-in-capital and retained earnings

  Prepare table with the cost of capital

Prepare table with the cost of capital that you would calculate for the equity with the following estimates of the market risk premium

  How much did grant borrow

How much did Grant borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.)

  Provided data for the month of august

The company allocates any under applied or over applied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

  Calculate the current price of corporate bond

Calculate the current price of the ordinary share if the average return of the shares in the same industry is 9%? Calculate the current price of corporate bond

  Which instances does not preclude an entity from recognizing

Which instances does not preclude an entity from recognizing depreciation during a certain period? The asset is classified as held for sale under PFRS 5.

  Calculate the sum that ellen would have to pay now

Calculate the sum that Ellen would have to pay now in order to prepay five years of rent. The interest rate is 7%.

  Discuss the results of your ratio analysis

Discuss the results of your ratio analysis and what the analysis tells you about FGL - ou are required to use the provided Excel workbook to complete

  Prepare the budget submission to kevin

Lesley Donovan is the controller for the East division of Explorer Ltd. Jason Conner, head of plant engineering, has just left Donovan's office after presenting three alternatives for submission in the capital expenditure budget for the fiscal yea..

  Calculating divisions margin turnover return on investment

calculating divisions margin turnover return on investment roi residual income.ebel wares is a division of a major

  Jacob''s savings account balance

Jacob earned $80 babysitting and deposited the money into his savings account. The next week he spent $85 on video games. Use integers to describe the weekl changes in Jacob's savings account balance.

  General ledger entry to record the purchase of materials

The general ledger entry to record the purchase of materials is:

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