Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $155,000 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized t Account Name Dr. Cr. 155,000 Building Land To record the costs of construction, Building interest Expense $50,000 80,000 30.000 5,000 2,000 $167,000 To record the completion of the building. 155,000 0

Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $155,000 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized t Account Name Dr. Cr. 155,000 Building Land To record the costs of construction, Building interest Expense $50,000 80,000 30.000 5,000 2,000 $167,000 To record the completion of the building. 155,000 0

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 34E

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