Question
In: Accounting
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 1,310,000 March 1, 2018 1,020,000 June 30, 2018 1,220,000 October 1, 2018 1,020,000 January 31, 2019 333,000 April 30, 2019 666,000 August 31, 2019 963,000 On January 1, 2018, the company obtained a $3,700,000 construction loan with a 12% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.
Solutions
ekkarill92 answered 4 weeks agoRelated Solutions
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
2,020,000
March 1, 2018
1,740,000
June 30, 2018
1,940,000
October 1, 2018
1,740,000
January 31, 2019
441,000
April 30, 2019
774,000
August 31, 2019
1,071,000
On January 1, 2018, the company obtained a $4,900,000 construction
loan with a 12% interest rate....
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019. Expenditures on
the project were as follows: January 1, 2018 $ 1,710,000 March 1,
2018 1,320,000 June 30, 2018 1,520,000 October 1, 2018 1,320,000
January 31, 2019 378,000 April 30, 2019 711,000 August 31, 2019
1,008,000 On January 1, 2018, the company obtained a $4,200,000
construction loan with a 16% interest rate....
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018,
the Mason Manufacturing Company began construction of a building to
be used as its office headquarters. The building was completed on
September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,180,000
March 1,
2018
660,000
June 30,
2018
860,000
October 1,
2018
660,000
January 31,
2019
279,000
April 30,
2019
612,000
August 31,
2019
909,000
On January 1, 2018, the company obtained a $3,100,000 construction
loan with a 12% interest rate....
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,050,000
March 1, 2018
870,000
June 30, 2018
390,000
October 1, 2018
690,000
January 31, 2019
675,000
April 30, 2019
990,000
August 31, 2019
1,710,000
On January 1, 2018, the company obtained a $3 million construction
loan with a 14% interest...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,200,000
March 1, 2018
900,000
June 30, 2018
1,100,000
October 1, 2018
900,000
January 31, 2019
315,000
April 30, 2019
648,000
August 31, 2019
945,000
On January 1, 2018, the company obtained a $3,500,000 construction
loan with a 12% interest rate....
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,420,000
March 1, 2018
1,140,000
June 30, 2018
1,340,000
October 1, 2018
1,140,000
January 31, 2019
351,000
April 30, 2019
684,000
August 31, 2019
981,000
On January 1, 2018, the company obtained a $3,900,000
construction loan with a 12% interest rate....
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,070,000
March 1, 2018
840,000
June 30, 2018
380,000
October 1, 2018
710,000
January 31, 2019
1,170,000
April 30, 2019
1,485,000
August 31, 2019
2,700,000
On January 1, 2018, the company obtained a $3 million construction
loan with a 14% interest...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019. Expenditures on
the project were as follows: January 1, 2018 $ 1,300,000 March 1,
2018 720,000 June 30, 2018 340,000 October 1, 2018 640,000 January
31, 2019 450,000 April 30, 2019 765,000 August 31, 2019 1,260,000
On January 1, 2018, the company obtained a $3 million construction
loan with a 10% interest...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018,
the Mason Manufacturing Company began construction of a building to
be used as its office headquarters. The building was completed on
September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,200,000
March 1,
2018
660,000
June 30,
2018
520,000
October 1,
2018
620,000
January 31,
2019
360,000
April 30,
2019
675,000
August 31,
2019
1,080,000
On January 1, 2018, the company obtained a $3 million construction
loan with a 11% interest...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018,
the Mason Manufacturing Company began construction of a building to
be used as its office headquarters. The building was completed on
September 30, 2019.
Expenditures on the project were as follows:
January 1, 2018
$
1,940,000
March 1,
2018
1,680,000
June 30,
2018
1,880,000
October 1,
2018
1,680,000
January 31,
2019
432,000
April 30,
2019
765,000
August 31,
2019
1,062,000
On January 1, 2018, the company obtained a $4,800,000 construction
loan with a 14% interest rate....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- <html> <head> <title>Nick D'Angelo</title> </head> <body> <h1>This is a header</h1> <h2>This is a subheader</h2> &nbs
- Are there any differences that you see in the companies listed on the NASDAQ from the...
- It requires substantial energy to reduce metal ore to pure metal. The reverse process, corrosion, happens...
- 7.What is the hexadecimal equivalent of the 16-bit signed integer -32,760 ? *Note: answer in two's...
- Please use C++ to complete this question follow the requirement. Question: Implement a class called DoublyLinkedList....
- C++ split_list(Lst,N): split lst into two parts with the first part having N elements, and return...
- 1. Explain how diversity has emerged as an important (academic, political, etc ) issue in the...
ADVERTISEMENT