Coronado Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $1,932,000 on March 1, $1.212.000 on June 1, and $3,081,610 on December 31. Compute Coronado's weighted-average accumulated expenditures for interest capitalization purposes. Weighted average accumulated expenditures

Coronado Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $1,932,000 on March 1, $1.212.000 on June 1, and $3,081,610 on December 31. Compute Coronado's weighted-average accumulated expenditures for interest capitalization purposes. Weighted average accumulated expenditures

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.1MBA

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answer in text form please (without image), Note: .Every entry should have narration please Computing and Recording Interest Capitalization Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January 1, $1,960,000; February 1, $1,785,000; and March 31, $2,555,000. Bullock had the following debts outstanding during this quarter. Debt Amount Note payable, 10%, incurred specifically to finance construction $1,120,000 Short-term note payable, 15% 1,750,000 Mortgage note payable, 8% 840,000 Answer the following questions, rounding your answers to the nearest whole number.a. Compute interest to be capitalized and interest to be expensed for this first quarter. Amount of interest to be capitalized Amount of interest to expense b. Prepare the entry to record the…
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. Subject Property Number of apartments Market rent (per month) Vacancy and collection losses Operating expenses Capital expenditures O $135,000 $162,000 $137.700 $153,900 15 1000 10% of PGI 5% of EGI 10% of EGI
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