FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: B 4 12% bonds Long-term note, 8% Required: Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 1 $600,000 $1,200,000 $800,000 $600.000 $300,000 Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place.) Expenditure Average Date January 1 March 31 June 30 September 30 December 1 Avg. accumulated expenditures 5,000,000 3,000,000 Average accumulated expenditures X X X X X Amount Weight X X IIII|| Interest Rate P Capitalized Interestarrow_forwardCryer, Inc. has a $45,000,000 note payable on its balance sheet as of 12/31/19, of which $6,000,000 is due in 2020. Cryer will report the liability as what on its 12/31/19 balance sheet: O A $6,000,000 current liability and a $45,000,000 long-term liability O A $45,000,000 long-term liability O A $45,000,000 current liability O A $6,000,000 current liability and a $39,000,000 long-term liabilityarrow_forwardSubject: acountingarrow_forward
- Refer to the following list of liability balances t December 31, 2024. $23,000 Accounts Payable Employee Health Insurance Payable Employee Income Tax Payable Estimated Warranty Payable (Due 2025) Long - Term Notes Payable (Due 2028) FICA-OASDI Taxes Payable Sales Tax Payable 450 1,100 1,000 38.000 660 870 Mortgage Payable (Due 2029) Bonds Payable (Due 2030) Current Portion of Long - Term Notes Payable 8,000 53,000 11,500 What is the total amount of current liabilities? O A. $27,080 O B. $38,580 OC. $25,980 OD. $24,980arrow_forwardam.103.arrow_forward5. Soriano's Corporation's liability account balances at June 30, 2020, included a 10% notes payable in the amount of P3,600,000. The note is dated October 1, 2019, and is payable in three equal annual payments of P1,200,000 plus interest. The first interest and principal payment was made on October 1, 2020. In its June 30, 2021 financial statement, what amount should be recorded as accrue interest for this note?arrow_forward
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