On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds used to finance the construction of a qualifying asset: Principal 12% bank loan (1.5 years) 10% bank loan (3-year) P1,000,000 P8,000,000 Expenditures made on the qualifying asset were as follows: Jan.1 P 5,000,000 March 1 4,000,000 August 31 December 1 3,000,000 2.000.000

s

am.103.

Interest During Construction Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed $1 million specifically for the project by issuing a 10%, 5-year, $1 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, $3 million note payable and a 10%, 10-year, $1.8 million note payable outstanding all year. In Year 1, Dexter incurred costs as follows: January 1 $260,000 March 1 540,000 June 30 1,000,000 November 1 420,000 Calculate Dexter's capitalized interest on the student condominium complex for Year 1. Capitalized interest =

Isko Company had the following general borrowings during 2021 which were used to finance the construction of the entity's new building. Principal 2,800,000 Borrowing Cost 280,000 10% bank loan 10% short-term note 1,600,000 160,000 2,000,000 6,400,000 The construction began on January 1, 2021 and the building was completed on December 31, 2021. In the first phase of the construction, there were idle funds which the entity invested and earned interest 12% long-term loan 240,000 680,000 income of P62,500. Expenditures on the building were made as follows: January 1 March 31 400,000 1,000,000 June 30 1,200,000 September 30 1,000,000 December 31 400,000 What is the amount of capitalizable borrowing cost? (Use 3 decimal places for capitalization rate.)

am. 85.

On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders: 1. Prepare the journal entry for lending the funds on January 1, 20x1. 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment received on December 31, 20x1. 4. Prepare the journal entry for the third installment payment received on December 31, 20x3. Complete this question by entering your answers in the tabs below. Req 2 Saved Req 1 3 and 4 2021 Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.) Dec. 31 Cash…

Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year:     £m 10% loan repayable 20X9 250  8% loan repayable 20Y2 750   Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250

Subject : Accounting

From the following list indicate which of the liabilities that would be classified as current. O a. Deferred revenue on a project that will be completed in 6 months O b. Bank loan payable in 2 years O c. Deferred income taxes O d. Pension liability Oe. The portion of a 10-year bank loan that is due this year O f. Payroll deductions owing to the government Og. A provision for warranty repairs related to a product with a 1-year warranty ype here to search eTextbook and Media 8: