A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $610,000; March 31, $710,000; June 30, $510,000; October 30, $930,000. The company arranged a 10% loan on January 1 for $920,000. Assume the $920,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 12% and 9%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%). Answer is complete but not entirely correct. Date Expenditure Weight Average January 1 March 31 June 30 $ 610,000 x 12/12 $ 610,000 710,000 9/12 = 532,500 510,000 6/12 = 255,000 October 30 930,000 x 2/12 = 155,000 Accumulated expenditures $ 2,760,000 $ 1,552,500

A construction company entered into a fixed-price contract to build an office building for $18 million. Construction costs incurred during the first year were $6 million, and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. During the first year the company billed its customer $6 million, of which $3 million was collected before year-end. What would appear in the year-end balance sheet related to this contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Balance Sheet (Partial) Assets:

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000; June 30, $490,000; October 30, $870,000. The company arranged a 8% loan on January 1 for $880,000. Assume the $880,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 12% and 7%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%). Date January 1 Expenditure Weight Average $ 590,000 x 12/12 = $ 590,000 March 31 690,000 x 9/12 = 517,500 June 30 490,000 x 6/12 = 245,000…

Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,960,000 on March 1, $2,640,000 on June 1, and $6,600,000 on December 31. Bonita Company borrowed $2,200,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $4,400,000 note payable and an 11%, 4-year, $7,700,000 note payable. Compute avoidable interest for Bonita Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to O decimal places, eg. 5,275.) Avoidable interest %24

Munabhai

Dominion construction is awarded a contract to build a commercial building. The contract price is $1,500,000 and during the first month of the job, the following transactions occurred:   Cash expenditures to date $300,000 Total expenditures to date $350,000 Estimated expenditure to complete $1,100,000 Total estimated expenditures $1,450,000 Billing to date $280,000 Cash collected to date $250,000     What is "Revenue to Date" in Cash Method?     350000     280000     250000     300000

MSK Construction Company contracted to construct a factory building for $525,000. Construction started during 20X1 and was completed in 20X2. Information relating to the contract follows:     20X1 20X2 Costs incurred during the year $ 290,000   $ 150,000   Estimated additional cost to complete   145,000     —   Billings during the year   260,000     265,000   Cash collections during the year   240,000     285,000       Required: Record the preceding transactions in MSK’s books assuming it recognizes revenue over time and uses costs incurred to measure the extent to which its performance obligation has been satisfied. Record the preceding transactions in MSK’s books assuming it recognizes revenue at a point in time when control of the completed factory is transferred to the customer at the end of the project. Question: Prepare the entry to record revenue, expense, and completion of the project.

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000, June 30, $490,000; October 30, $870,000. The company arranged a 8% loan on January 1 for $880,000. Assume the $880,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 12% and 7%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. A company constructs a building for its own use. Construction began on January 1 and ended on December The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000; June 30, $490,000; October 30, $870,0 00. The company arranged a 8% loan on January 1 for $880,000. Assume the $880,000 loan is not…

On March 1, Gatt Co began construction of a small building. The following expenditures were incurred for construction: March 1: $75,000 April 1: $74,000 May 1: $180,000 June 1: $270,000 July 1: $100,000 The building was completed and occupied on July 1. To help pay for the construction, $50,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt outstanding during the year was a $500,000, 10% note issued two years ago. 1. Calculate the weighted-average accumulated expenditures Use commas, but do not use $ signs or cents. Question 11 Calcualte the actual interest cost incurred during the year. 4 pts

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