What is the interest expense for 2020? A. P1,800,000B. P1,200,000C. P1,600,000D. P1,000,000 Black Widow Company borrowed P15,000,000 at 12% to finance in part the construction of a newbuilding on January 1, 2020 and in part for general purposes.The loan is to be repaid commencing the month following completion of the building.Expenditures for the completed structure totaled P10,000.000 during the year ended December 31,2020. These expenditures were incurred evenly throughout the year.The entity earned interest of P200,000 for the year on the unexpended portion of the loan.

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Answered: What is the interest expense for 2020?…

Business

Accounting

What is the interest expense for 2020? A. P1,800,000 B. P1,200,000 C. P1,600,000 D. P1,000,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
On January 1, 2020, Christine Company borrowed P30,000,000 at 12% to finance partly the construction of building and partly for general purposes. The loan shall be repaid commencing the month following completion of the building. Expenditures for the completed structure totaled P25,000,000 during the year ended December 31, 2020. These expenditures were incurred evenly throughout the year. Christine Company earned interest of P200,000 for the year on the unexpended portion of the loan. 1. What amount of interest is capitalized as cost of building on December 31, 2020? 2. If the company is an SME, what is the cost of the building on December 31, 2020?
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