Freitas Corporation was organized early in 2016. The following expenditures were made during the first fewmonths of the year:$ 12,0003,00020,0002,00030,00040,000Attorneys' fees in connection with the organization of the corporationState filing fees and other incorporation costsPurchase of a patentLegal and other fees for transfer of the patentPurchase of furniturePre-opening salariesTotal$107,000Required:Prepare a summary journal entry to record the $107,000 in cash expenditures.

Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…

Answered: Freitas Corporation was organized early…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 7RE

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Freitas Corporation was organized early in 2018. The following expenditures were made during the first fewmonths of the year:Attorneys’ fees in connection with the organization of the corporation $ 12,000State filing fees and other incorporation costs 3,000Purchase of a patent 20,000Legal and other fees for transfer of the patent 2,000Purchase of equipment 30,000Pre-opening salaries and employee training 40,000Total $107,000Required:Prepare a summary journal entry to record the $107,000 in cash expenditures
Freitas Corporation was organized early in 2024. The following expenditures were made during the first few months of the year: Attorneys' fees in connection with the organization of the corporation State filing fees and other incorporation costs Purchase of a patent Legal and other fees for transfer of the patent Purchase of equipment Preopening salaries and employee training Total Required: Prepare a summary journal entry to record the $113,300 in cash expenditures. $ 13,200 4,200 20,900 2,900 31,000 41,100 $ 113,300
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2022 and 2023. The entity began the self-construction of a building on January 1, 2022 and was completed on December 31, 2023. The following expenditures were made during 2022 and 2023: January 1, 2022 4,000,000 April 1, 2022 5,000,000 December 1, 2022 3,000,000 March 1, 2023 6,000,000 5. What is the cost of the building, assuming the building was completed on June 30, 2023? A. 18,000,000 B. 19,884,000 C. 20,868,000 D. 19,377,000
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022: January 1, 2021 4,000,000April 1, 2021 5,000,000December 1, 2021 3,000,000March 1, 2022 6,000,000 What amount of interest is capitalized as cost of the new building in 2021? What is the cost of the building to date December 31, 2021? What is the cost of the building on December 31, 2022? What amount of interest expense should be reported for 2022?
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022: January 1, 2021 4,000,000April 1, 2021 5,000,000December 1, 2021 3,000,000March 1, 2022 6,000,000 1. What is the amount of interest capitalized as ost of the new building? And what is the cost of new building to date dec. 31 2021
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022: January 1, 2021 4,000,000April 1, 2021 5,000,000December 1, 2021 3,000,000March 1, 2022 6,000,000 What amount of interest expense should be reported for 2022?
Jen Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022:January 1, 2021 4,000,000 April 1, 2021 5,000,000 December 1, 2021 3,000,000 March 1, 2022 6,000,000 1) What is the cost of the building on December 31, 2022? A. 18,000,000 B. 20,988,000 C. 19,980,000 D. 20,100,000 2) What amount of interest expense should be reported for 2022? A. 3,000,000 B. 3,300,000 C. 1,212,000 D. 912,000
Jen Company had a 10% P1,000,000 specific construction loan and 12% P20,000,000 general loan outstanding during 2021. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2021. The following expenditures were made during 2021: January 1, 2021 1,000,000April 1, 2021 2,000,000December 1, 2021 3,000,0001) What is the cost of the building on December 31, 2021?
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the carrying amount of PPE in December 31, 2022? * a. P6,354,000 b . P6,454,040 c. P6,454,080 d. P6,363,040
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the borrowing cost capitalized in December 31, 2021? * P270,000 P324,000 P416,000 P284,000
On December 31, 2016, Headland Inc. borrowed $840,000 at 12% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: June 1, $336,000; July 1, $504,000; September 1, $1,008,000; December 1, $504,000. The building was completed in April 2018. Additional information is provided as follows. 1. Other debt outstanding 10-year, 10% bond, dated December 31, 2010, interest payable annually $8,400,000 15-year, 12% note, dated December 31, 2004, interest payable annually $2,100,000 2. Interest revenue earned in 2017 $5,040 Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2017
From the following information provided by MNC Ltd. for the year ended 31st March, 2016, calculate the overall (maximum) managerial remuneration : $ $ 65,000 30,000 16,70,000 1,70,000 To Salaries and Wages Тo Repairs To Depreciation (including Development Rebate To General Expenses To Loss on Sale of Investment To Scientific Research (new Laboratory setup) To Donation to Charitable Institutions To Interest on Debentures To Debenture Trustees Remuneration To Directors' Fees To Income Tax To Proposed Dividend To Balance c/d By Gross Profit By Profit on Sale of Plant (Cost $3,00,000; Written down value $1,50,000 Amount realised on Sale $3,20,000) By Subsidy from Government 1,10,000 25,000 20,000 15,000) 40,000 1,03,000 35,000 35,000 15,000 12,000 5,10,000 5,10,000 4,10,000 18,80,000 18,80,000

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