Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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On December 31, 2024, Blossom Inc. borrowed $4,380,000 at 12% payable annually to finance the construction of a new building. In
2025, the company made the following expenditures related to this building: March 1, $525,600; June 1, $876,000; July 1,
$2,190,000; December 1, $2,190,000. The building was completed in February 2026. Additional information is provided as follows.
1.
2.
Other debt outstanding:
10-year, 13% bond, December 31, 2018, interest payable annually
6-year, 10% note, dated December 31, 2022, interest payable annually
March 1, 2025, expenditure included land costs of $219,000.
3. Interest revenue of $71,540 earned in 2025.
$5,840,000
2,336,000
Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building.
The amount of interest $
On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1.
(a)
INMACULATA TRUCKING., INC.
On April 1, 2020, Marie France organized a business called Inmaculata Trucking. Inc. During
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Apr 1
Marie France deposited Php 500,000 cash in a bank account in the name of the business.
Purchased for Phr 250,000 a transportation equipmentto be used in the business.
Marie France paid 50% as down payment while the balance will be paid on May 15, 2020
Apr 1
Apr 1
Paid rental forthe month of April, Php 5,000
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Earned and collected trucking income from Eva, Php 8,000
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Earned trucking income from Julia, Php 30,000 on account and Julia will pay on May 8, 2020
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Apr 15
Apr 18
Paid electric bills for the month, Php 2,000
Apr 20
Collected from Joshua the balance of his April 15 account
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