Business, 10.09.2019 19:30 angel41583

On january 1, 2016, the mason manufacturing company began construction of a building to be used as its office headquarters. the building was completed on september 30, 2017.
expenditures on the project were as follows:
january 1, 2016 $ 1,000,000
march 1, 2016 600,000
june 30, 2016 800,000
october 1, 2016 600,000
january 31, 2017 270,000
april 30, 2017 585,000
august 31, 2017 900,000
on january 1, 2016, the company obtained a $3 million construction loan with a 10% interest rate. the loan was outstanding all of 2016 and 2017. the company�s other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. both notes were outstanding during all of 2016 and 2017. interest is paid annually on all debt. the company�s fiscal year-end is december 31.
required:
1.
calculate the amount of interest that mason should capitalize in 2016 and 2017 using the specific interest method.
2.
what is the total cost of the building?
3.
calculate the amount of interest expense that will appear in the 2016 and 2017 income statements.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:30

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c incorrect

Answers: 2

Answer

Business, 22.06.2019 16:50

In terms of the "great wheel of science", statistics are central to the research process (a) only between the hypothesis phase and the observation phase (b) only between the observation phase and the empirical generalization phase (c) only between the theory phase and the hypothesis phase (d) only between the empirical generalization phase and the theory phase

Answers: 1

Answer

Business, 23.06.2019 00:50

On december 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: accounts receivable, debit balance of $97,900; allowance for doubtful accounts, credit balance of $1,031. what amount should be debited to bad debts expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

Answers: 1

Answer

Business, 23.06.2019 04:00

Match the different taxes to the levels at which these taxes are levied on consumers and businesses national level/ national and local levels 1.sales tax 2.income tax 3.payroll tax 4.social security tax 4.property tax

Answers: 1

Answer

You know the right answer?

On january 1, 2016, the mason manufacturing company began construction of a building to be used as i...

Questions