2,800,000 1,600,000 % bank loan 280,000 0% short-term note % long-term loan 160,000 2,000,000 6,400,000 240,000 680,000 truction began on January 1, 2021 and the building was completed on December 31, 2021. In hase of the construction, there were idle funds which the entity invested and earned interest P62,500. Expenditures on the building were made as follows: nuary 1 arch 31 400,000 1,000,000
Q: The board of directors of Northshore plc decided to make a takeover bid for South Shore plc. After…
A: Insider trading is defined as the trading of a company's shares by individuals who, as a result of…
Q: Sonic Oxy cleaner cleaner Sales Price $70 $42 22 Variable cost per unit 40 Total demand for Oxy is…
A: In cost volume profit analysis, limiting factor is used to produce that product which gives maximum…
Q: The day count convention used in PH Bond Market 30/365 Actual/365 30/360
A: 30/360 is the correct answer. The Day count convention is called Day Count Fraction and in laymen's…
Q: Required: Discuss what amounts are deductible as specific deductions for Opt Pty Ltd. Assume that…
A: A Legal and other expert costs are not expressly specified as deductible expenses in the Act. As a…
Q: State the difference between common stock and preferred stock.
A: Shareholders' fund consist of two types of stock namely common stock and preferred stock. Both…
Q: Henredon purchased a high precision programmable router for shaping furniture components for $85000.…
A: Income Tax Payment: An income tax payable account is a kind of account that appears on a company's…
Q: Royal Lawncare Company produces and selts two packaged products-Weedban ond Greengrow. Revenue and…
A:
Q: Cost Driver rate
A: Cost driver refers to the cost which is affected by some specific business activities and influenced…
Q: On Jan 1, 20X1, ABC Corp received a P300,000 3-year note from a customer. The principal and interest…
A:
Q: A motorcycle can be purchased for $8700 or leased for a de on time. Assuming that the monthly…
A: Leases:- It is a contract where the lessee takes the asset on lease from the lessor for a specified…
Q: Why would the company redeem the bonds prior to the maturity date if they were going to recognize a…
A: A bond appears to be a debt owing to a firm or government that pays holders a predetermined interest…
Q: 1. Prepare a statement of liquidation with supporting schedules.
A: The trial balance of JMN partnership is given as on January 31, 2022. The partnership is going into…
Q: On January 1, 2021, PingPing Corp. acquired all the assets and liabilities of Willy Corp. by issuing…
A:
Q: Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the…
A:
Q: 3. JFINEX Corporation has a retained earnings of 2,100,000. The company reported an EBIT of 540,000…
A: Formula: Dividend payout ratio = ( Declared total dividends / Net income ) x 100
Q: 5. Assume that a partnership had assets with a book value of P240,000 and a market value of…
A: Liquidation of Partnership Firm: Liquidation of the Partnership firm means dissolution of the the…
Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…
A: Pretax earnings are a corporation's earnings after deducting all operational expenditures, including…
Q: Given: The 456 Company purchased office supplies from A-One Supplies worth P80,000 on April 04,…
A: Solution: List price of supplies = P80,000 Trade discount = 5%, 2% Cash discount = 5% if paid with…
Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…
A: Introduction: A corporation's pretax earnings provide information about its financial performance…
Q: Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its…
A: Introduction: Current liabilities: The Liabilities which are to be paid with in one year period of…
Q: Atlas Foods produces three supplemental food products simultaneously through a refining process…
A: Joint costs are the one which are allocated to more than 1 product which are produced from same…
Q: Maynard Corporation reports net assets of P300,000 at book value. These assets have an estimated…
A: Definition and Goodwill Formula Control premium is the excess price paid over the market price of…
Q: Complete the FLASH TRUCKING SERVICES UNADJUSTED TRIAL BALANCE DECEMBER 30, 2014
A: Unadjusted trial balance is the summary of all general ledger account balances of the business…
Q: Name the error which was made under the following circumstances: The purchase of the machinery on…
A: When machinery is purchased on credit . Machinery account is debited. It's wrongly debited to…
Q: Use the following information for questions. The following accounts were included on Stacy's Style…
A: Current Assets are those assets which can be converted into cash within a period of one year or in…
Q: On January 1, 2020, Merlo Company acquired 80% of the stocks of Fritzie Company for P2,000,000. On…
A: Cost of sales by Merlo Company to Fritzie Company =800000 - 25% x 800000 = 600000 1)Cost of sales by…
Q: Henredon purchased a high precision programmable router for shaping furniture components for $85000.…
A: The income taxes are the tax liability to be paid on the income earned by the taxpayers. The…
Q: How do you find the standard quantity for efficiency variance?
A: The difference between standards and actual performance outcomes is referred to as a "variance."…
Q: EFG Corporation sold 10,500 dishwashers for P1,100 each during 2020. The dishwashers are under…
A: Warranty is a guarantee from the company that the product will be repaired or replaced. The working…
Q: Happy Selling's had the following accounts atyear end: Cash-250,000, Accounts Payable-70,000,…
A: Introduction: Current Assets: The assets which can be easily converted in to cash with in 12 months…
Q: Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells…
A:
Q: Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Aurora Lighting Ltd has the following income statement items: sales of $12 000 000; cost of goods…
A: Introduction: Gross profit: Deduction of cost of goods sold from the sales value derives the Gross…
Q: Anne LLC purchased computer equipment (five-year property) on August 29, 2018 for S36,000. Anne LLC…
A: Introduction:- Depreciation is expense, which is charged on fixed assets over useful life of the…
Q: The Affordable Care Act (LO 7.4) Susan and Stan Collins live in Iowa, are married and have two…
A: A tax credit is a monetary sum that taxpayers can deduct directly from their tax returns. Tax…
Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…
A:
Q: On November 29, 20x1, ABC Co. placed a non-cancellable purchase order for the importation of a…
A: FOB shipping terms says that goods are meant to be shipped or delivered when these are shipped from…
Q: On January 4, 2021, Runyan Bakery paid $340 million for 10 million shares of Lavery Labeling Company…
A: Investment accounts consist of the shares in which the company has invested its money and holds some…
Q: a. What is the net present value of the project? (Negative amount should be indi factor to 3…
A: Net Present Value It is the difference between the present value of the cash inflows and present…
Q: On July 1, 2021, Ghana Company signed an agreement to operate as a franchisee of Fast Foods, Inc.…
A: Given data, Initial franchise fee =P6,000,000 Down payment =P2,000,000 Balance =P6,000,000 -…
Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…
A:
Q: Problem 16-18 (IAA) Emerald Company reported net income for 2021 at P1,550,000 hefore any…
A: Adjusted Net Income: The Net Income balance to be shown in the Financial Statements should be…
Q: Define the position of a net creditor
A: After reconciling all of the financial transactions conducted between it and the rest of the world,…
Q: omplete the following: FLASH TRUCKING SERVICES INCOME STATEMENT DECEMBER 31, 2014 FLASH TRUCKING…
A: Financial statements are those statements which are prepared at the end of the period in order to…
Q: On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which…
A: Capitalization of expenses in connection with the fixed assets should be done if they increase their…
Q: For each of the five independent situations below, prepare a journal entry that summarizes the…
A: Cash paid to suppliers = Cost of goods sold + Increase in inventory - increase in accounts…
Q: 1. Explain the difference between the social role of accounting and the traditional role of…
A: The Accounting is an art of identification, recording, summarizing, analysing and interpretation of…
Q: help me identify if this is an asset, expense, withdrawals, liability, revenues - a written promise…
A: Asset is the useful thing we have us like property, car, machines. These are valuable things that…
Q: Describe the two-stage allocation process for assigning support service costs to products in…
A: The method involves identifying and allocating costs to multiple cost objects known as cost…
Q: Belmont Corp. is considering the purchase of a new piece of equipment. The cost savings from the…
A: Accounting rate of return (ARR) = ARR is a financial ratio that calculates the return generated from…
Step by step
Solved in 3 steps
- The following transactions pertain to the general borrowings made during 2021 by Jeon Company in connection with the construction of the company’s new warehouse: • 8% bank loan- P2,400,000 • 6% short-term note- P1,600,000 • 8% long-term note- P2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: • January 1- P400,000 • March 31- P1,000,000 • June 30- P1,200,000 • September 30- P1,000,000 • December 31- P400,000 How much is the capitalizable borrowing cost of Jeon Company?Required to answer. Single choice.The following transactions pertain to the general borrowings made during 2021 by Owshi Company in connection with the construction of the company’s new warehouse: • 8% bank loan- $2,400,000 • 6% short-term note- $1,600,000 • 8% long-term note- $2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: • January 1- $400,000 • March 31- $1,000,000 • June 30- $1,200,000 • September 30- $1,000,000 • December 31- $400,000 How much is the capitalizable borrowing cost of Owshi Company?On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $5,100,000 and $7,100,000 with interest rates of 7% and 9%, respectively. Both notes were outstanding during all of 2021 and 2022. 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 2021 and 2022 using the weighted-average method. 2. What is the total cost of the building? 3. Calculate the…
- Molave Company had the following outstanding loans during 2021 and 2022. Specific construction loan – 3,000,000 – 10% General loan – 25,000,000 – 12% The entity began the self-construction of a new building January 1, 2021 and the building was completed on June 30, 2022. The following expenditures were made: January 1, 2021 - 4,000,000 April 1, 2021 - 5,000,000 December 1, 2021 - 3,000,000 March 1, 2021 - 6,000,000 Required: Compute the cost of the new building on December 31, 2021 and June 30, 2022. Compute the interest expense for 2021 and 2022.Sulo Company had the following borrowings during 2021. The borrowing were made for general purposes but the proceeds were used to finance the construction of new building. 12% bank loan – Principal – 3,000,000; Interest – 360,000 14% long term loan – Principal -5,000,000; Interest – 700,000 The construction began on January 1, 2021 and was completed on December 31, 2021. Expenditures on the building were 2,000,000 on January 1, 2,000,000 on June 30 and 1,000,000 in December 31. Required: Compute the cost of the building.Maragondon Company had the following borrowings during 2018. The borrowings were made for general purposes but the proceeds were used in part to finance the construction of a new building: Principal Interest 12% bank loan 10,000,000 1,200,000 15% long-term loan 20,000,000 3,000,000 30,000,000 4,200,000 The construction began on January 1, 2018 and was completed on December 31, 2018. Expenditures on the building were made as follows:January 1 8,000,000June 30 8,000,000December 31 4,000,000 The capitalizable borrowing cost isa. 1,680,000b. 1,400,000c. 4,200,000d. 1,620,000 What is the solution for the option A?
- Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction.Specific borrowing ---P700,000, 16% due January 1, 2023General borrowing ---P500,000, 18% due December 31, 2024How much interest is capitalized?During 2021, Colorado Company constructed a 3-storey building. The weighted average expenditures for capitalization of interest during 2021 amounted to P 23,600,000. The existing debt of Colorado are the following: From Union Bank (specific borrowing), P 3,600,000, 10% From Land Bank (general borrowing), P 6,000,000, 20% From Security Bank (general borrowing), P 10,000,000, 18% What is the capitalized borrowing costs for the year ended December 31, 2021? A. 4,110,000 B. 3,750,000 C. 3,788,000 D. 3,360,000 What is the interest expense for the year ended December 31, 2021? A. 322,000 B. 390,000 C. 750,000 D. 0During 2021, Colorado Company constructed a 3-storey building. The weighted average expenditures for capitalization of interest during 2021 amounted to P 23,600,000. The existin debt of Colorado are the following: • From Union Bank (specific borrowing), P 3,600,000, 10% • From Land Bank (general borrowing), P 6,000,000, 20% • From Security Bank (general borrowing), P 10,000,000, 18% QUESTION 1: What is the capitalized borrowing costs for the year ended December 31, 2021? [Select ] | Select] P3,750,000 P 3,788,000 P 3,360,000 P 4,110,000 QUESTION 2: What is the interest expense for the year ended December 31 , 2021? [ Select ]
- On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: B 4 12% bonds Long-term note, 8% Required: Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 1 $600,000 $1,200,000 $800,000 $600.000 $300,000 Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place.) Expenditure Average Date January 1 March 31 June 30 September 30 December 1 Avg. accumulated expenditures 5,000,000 3,000,000 Average accumulated expenditures X X X X X Amount Weight X X IIII|| Interest Rate P Capitalized InterestOn January 1, 2021, the company obtained a $3 million loan with a 10% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 On January 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $4,400,000 and $6,400,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31. $1,300,000 720,000 340,000 640,000 450,000 765,000 1,260,000 Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method. 2.…Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction. Specific borrowing ---P800,000, 16% due January 1, 2023 General borrowing ---P500,000, 18% due December 31, 2024 What is the total cost of the building?