9:41 V1.185G 19% KB/s expert.chegg.com/q Chegg Hi Rise obtained planning 14 permission to build a new office building. Construction commenced on 1 March 20X1. To help fund the cost of this building, a loan for $5m was taken out from the bank on 1 April 20X1. The interest rate on the loan was 10% per annum.Construction of the building ceased during the month of July due to an unexpected shortage of labour and materials. By 31 December 20X1, the building was not complete. Costs incurred to date were $12m (excluding interest on the loan). Required: Discuss the accounting treatment of the above in the financial statements of Hi-Rise for the year ended 31 December 20X1. Skip Start Solving Exit > Training

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Chapter 3 Financial Mathematics (Exercises) Future Value Calculations Exercise 1: (answers on page 347) 1) A factory purchases new equipment which costs R5,2 million. It depreciates at a rate of 12,5% per annum on a reducing balance. The replacement cost of the equipment escalates at a rate of 7,5% per annum. A sinking fund is set up to pay for the new machinery in 6 years' time. If the sinking fund earns 9% p.a. compounded monthly, determine: a) The book value of the old equipment in 6 years' time. b) The cost of the new equipment in 6 years' time. C) The value the sinking fund must attain, if the book value of the current equipment is used towards the cost of the new equipment. d) The monthly payments that need to be made into the sinking fund if payments commence one month after the current equipment is purchased and will continue until the new equipment is purchased. The

Question 5

Problem #5: A loan of $49,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1225 are made at the end of the month for the first 12 months. Payments of $1225 + x are made at the end of the month for the second 12 months. Payments of $1225 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 11.8%?

7:46 PM Ill WiFi 90 Suresh, a recently retired teacher, has requested you to help him select one from the following two proposals before him: Proposal A: To establish and run a primary school From the coming month, he could start a LKG class from a small vacant building owned by one of his relatives, by modifying the same at a cost of Rs.5 lakh. Thereafter at the end of each year, beginning from the first year, a fresh room would be added to the existing building to house the students of KG, first standard, second standard,, till the fifth standard. The estimated expenses for the same would be Rs.4 lakh at the end of the first year which would be rising per year by Rs.1 lakh. For all the years, the average net income per student would be Rs.10, 000 per annum as reckoned at the end of the year and their strength per class would be 20. Suresh is assured of getting a bank loan for all his project expenses at an interest rate of 12 percent. Once the fifth standard completes its first year,…

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LO 13.3 Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?

Problem 25-6 (AICPA Adapted) Chum Company started construction of a new office building on January 1, 2020 and moved into the finished building. on July 1, 2021. Of the P25,000,000 total cost of the building, P20,000,000 was incurred in 2020. evenly throughout the year. The entity's incremental borrowing rate was 12% throughout 2020, and the total amount of interest incurred.was P1,020,000. S, What amount should be reported as capitalized interest on December 31, 2020? а. 1,020,000 b. 1,200,000 с. 1,500,000 d. 2,400,000 CS Scanned with CamScanner

Problem 6-12 (Algo) Long-term contract; revenue recognized over time vs. upon project completion; loss projected on entire project [LO6-9] Curtiss Construction Company, Incorporated, entered into a fixed-price contract with Axelrod Associates on July 1, 2024, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,120,000. The building was completed on December 31, 2026. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Axelrod under the contract were as follows: Percentage of completion Costs incurred to date Estimated costs to complete Billings to Axelrod, to date Required: At 12-31-2024 At 12-31-2025 At 12-31-2026 10% 60% 100% $ 361,000 3,249,000 722,000 $ 2,604,000 1,736,000 2,210,000 $ 4,392,000 0 4,120,000 1. Compute gross profit or…