Based on Problem 10-6 Indigo Landscaping began construction of a new plant on December 1, 2020....

Based on Problem 10-6

Indigo Landscaping began construction of a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $147,600 in cash. In addition, it paid $3,120 in surveying costs and $4,080 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,120, with $960 being received from the sale of materials.

Architectural plans were also formalized on December 1, 2020, when the architect was paid $34,800. The necessary building permits costing $3,120 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.

Date of Payment		Amount of Payment
March 1		$248,400
May 1		340,800
July 1		61,200

Compute the balance in each of the following accounts at December 31, 2020, and December 31, 2021.

To finance construction of this plant, Indigo borrowed $602,400 from the bank on December 1, 2020. Indigo had no other borrowings. The $602,400 was a 10-year loan bearing interest at 9%.

The building was completed on July 1, 2021.

Using Excel calculate the following (show your work and use formulas where appropriate):

Balance in the Land account for December 31, 2020 and December 31, 2021
The weighted average of accumulated expenditures for 2020
The amount of interest capitalized in 2020
The weighted average of accumulated expenditures for 2021
The amount of interest capitalized in 2021
Balance in the Building account for December 31, 2020 and December 31, 2021
Balance in the Interest Expense account for December 31, 2020 and December 31, 2021

Expert Solution

ekkarill92 answered 1 year ago

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