Maitland Corp. is constructing a building to sell to a customer. Construction began on January 1, 2022, and is expected to last eighteen months. The following expenditures were made related to this project in 2022: January 1 - $700,000 March 31 - $1,500,000 October 31 - $1,200,000 Rounding calculations to the nearest whole month and whole dollar, calculate their weighted-average expenditures for 2022
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Maitland Corp. is constructing a building to sell to a customer. Construction began on January 1, 2022, and is expected to last eighteen months. The following expenditures were made related to this project in 2022:
January 1 - $700,000
March 31 - $1,500,000
October 31 - $1,200,000
Rounding calculations to the nearest whole month and whole dollar, calculate their weighted-average expenditures for 2022.
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- Doeren Inc. began constructing a building for its use on January 1, 2022. All costs associated with the construction are being debited to an account called “Construction-in-Progress.” The construction will take approximately 24 months. Weighted-average expenditures for 2022 have already been determined to be $5,000,000. The company has one specific, as well as two non-specific loan borrowings. Details are as follows: Specific Loan Borrowing: $4,000,000 loan at 9% taken out 1/1/2022 and due in 2025. Non-specific Borrowings: Note #1: $2,000,000 at 10%. This loan was outstanding for all of 2022 and is due in 2023. Note #2: $500,000 at 12%. This loan was outstanding for all of 2022 and is due in 2024. If the company has already accrued and paid the 2022 interest costs on these three loans by debiting “Interest Expense” and crediting “Cash”, what adjusting journal entry should be made on 12/31/22 to capitalize interest in 2022?On January 1, 2022, Winter Harvest Ltd. started a construction project for $4,500,000. Relevant data for 2022 and 2023 are as follows: 2022 2023 Current year construction costs $ 3,300,000 $ 620, 000 Estimated remaining costs to complete 600,000 - 0- Current year billings 3, 100, 000 1,400,000 Current year collections 3,000,000 1,500, 000 Required 1. Calculate the following amounts for each method: 2. Completed Contract Percentage of Completion 2022 2023 2022 2023 Gross Profit $ ? $ ? $ ? $ ? Construction in progress year - end balance. $ ? $ ? $ ? $ ? Costs in excess of billi\table[[, \table[[Completed], [Contract]], \table[[Percentage of], [Completion]]], [, 2022, 2023, 2022, 2023], [Gross Profit,$?, $?, $ ?, $?ngs (Billings in excess of costs) $ ? $ ? $ ? $ ?On January 1, 2023, Falcon Construction Ltd. starts a construction project for $4,500,000. Relevant data for 2023 and 2024 are as follows: 2023 2024 Current year construction costs $3,300,000 $ 620,000 Estimated remaining costs to complete 600,000 -0- Current year billings 3,100,000 1,400,000 Current year collections 3,000,000 1,500,000 Instructions Prepare the appropriate journal entries for both years using (a) the percentage-of-completion method, (b) the completed-contract method, and (c) the zero-profit method.
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- On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 1,710,000 March 1, 2018 1,320,000 June 30, 2018 1,520,000 October 1, 2018 1,320,000 January 31, 2019 378,000 April 30, 2019 711,000 August 31, 2019 1,008,000 On January 1, 2018, the company obtained a $4,200,000 construction loan with a 16% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 12% and 14%, respectively. Both notes were outstanding during all of 2018 and 2019. 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 2018 and 2019 using the…Start up expenses: To start the gym, the initial total investment required is $162,544.55EC. This figure includes all operational costs for the first month, including equipment costs, legal fees for drafting partnership contracts, business registration fees, renovation costs for painting the space and installing fixtures, mirrors, front desk etc. This figure also includes all operational costs for the next six months which is comprised mostly of rent and salaries. Between January and June 2022, the gym is expected to generate a loss since it is a new entity and therefore the partners have found it necessary to have enough capital on to cover the expenses for these months. To attain a loan from the National Bank of Dominica Ltd, at least 10% equity and 20% collateral is required. Therefore, all five partners have come to the agreement to each invest $18,000 EC. Cumulatively, equity in the business would be $90,000. This equity will fully cover the cost of equipment ($58,544.28c) which…On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,740,000 March 1, 2021 1,380,000 June 30, 2021 1,580,000 October 1, 2021 1,380,000 January 31, 2022 387,000 April 30, 2022 720,000 August 31, 2022 1,017,000 On January 1, 2021, the company obtained a $4,300,000 construction loan with a 12% interest rate. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 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. Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method. 2. What is the total cost of the…
- On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as itsoffice headquarters. The building was completed on September 30, 2019. Expenditures on the project were asfollows:January 1, 2018 $1,000,000March 1, 2018 600,000June 30, 2018 800,000October 1, 2018 600,000January 31, 2019 270,000April 30, 2019 585,000August 31, 2019 900,000On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loanwas outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-termnotes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end isDecember 31.Required:1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interestmethod.2. What is the total cost of the building?3. Calculate the amount of…On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,910,000 March 1, 2021 1,620,000 June 30, 2021 1,820,000 October 1, 2021 1,620,000 January 31, 2022 423,000 April 30, 2022 756,000 August 31, 2022 1,053,000 On January 1, 2021, the company obtained a $4,700,000 construction loan with a 12% interest rate. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $6,000,000 and $9,000,000 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.Required:1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific…On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,000,000 March 1, 2021 600,000 June 30, 2021 800,000 October 1, 2021 600,000 January 31, 2022 270,000 April 30, 2022 585,000 August 31, 2022 900,000 On January 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2021 and 2022. 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 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Required: Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest…
