12. On March 1, 2015, Gared Company began construction of a building. The following expenditures were incurred for construction: March 1, 2015 P1,050,000 August 29, 2015 October 2, 2015 December 30, 2015 5,000,000 17,950, 000 6,000,000 6,000,000 4,000,000 P40,000,000 May 1, 2016 June 30, 2016 Total Included in March 1, 2015 expenditures are materials purchased on account for P50,000. The account was paid on October 2, 2015. The building was substantially completed on June 30, 2016. To help pay for construction P5,000,000 was specifically borrowed on March 1, 2015 on a 12%, two-year note payable. Interest income earned while the loan is not yet fully utilized amounted to P50,000 in 2015 and nil in 2016. Other general debts during 2015 to 2016 are as follows: 10% 5-year Note Payable dated February 8% 10-year Bonds Payable 8,000,000 10,000,000
12. On March 1, 2015, Gared Company began construction of a building. The following expenditures were incurred for construction: March 1, 2015 P1,050,000 August 29, 2015 October 2, 2015 December 30, 2015 5,000,000 17,950, 000 6,000,000 6,000,000 4,000,000 P40,000,000 May 1, 2016 June 30, 2016 Total Included in March 1, 2015 expenditures are materials purchased on account for P50,000. The account was paid on October 2, 2015. The building was substantially completed on June 30, 2016. To help pay for construction P5,000,000 was specifically borrowed on March 1, 2015 on a 12%, two-year note payable. Interest income earned while the loan is not yet fully utilized amounted to P50,000 in 2015 and nil in 2016. Other general debts during 2015 to 2016 are as follows: 10% 5-year Note Payable dated February 8% 10-year Bonds Payable 8,000,000 10,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please refer to the picture below for information. Kindly show the complete solution. Thank you so much.
Question 1: What is the total cost of the Building on June 30, 2016?
![12. On March 1, 2015, Gared Company began construction of a building. The following expenditures were
incurred for construction:
March 1, 2015
P1,050,000
August 29, 2015
October 2, 2015
December 30, 2015
5,000,000
17,950, 000
6,000,000
May 1, 2016
June 30, 2016
6,000,000
4,000,000
Total
P40,000,000
Included in March 1, 2015 expenditures are materials purchased on account for P50,000. The account was
paid on October 2, 2015. The building was substantially completed on June 30, 2016.
To help pay for construction P5,000,000 was specifically borrowed on March 1, 2015 on a 12%, two-year
note payable. Interest income earned while the loan is not yet fully utilized amounted to P50,000 in 2015
and nil in 2016.
Other general debts during 2015 to 2016 are as follows:
10% 5-year Note Payable dated February
8% 10-year Bonds Payable
8,000,000
10,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4dac9aa-3cd3-4d5a-87c6-19b7ec8b9490%2Fce9dad64-a6de-4fbc-8b9a-f52d9b75e84f%2F47gwyw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12. On March 1, 2015, Gared Company began construction of a building. The following expenditures were
incurred for construction:
March 1, 2015
P1,050,000
August 29, 2015
October 2, 2015
December 30, 2015
5,000,000
17,950, 000
6,000,000
May 1, 2016
June 30, 2016
6,000,000
4,000,000
Total
P40,000,000
Included in March 1, 2015 expenditures are materials purchased on account for P50,000. The account was
paid on October 2, 2015. The building was substantially completed on June 30, 2016.
To help pay for construction P5,000,000 was specifically borrowed on March 1, 2015 on a 12%, two-year
note payable. Interest income earned while the loan is not yet fully utilized amounted to P50,000 in 2015
and nil in 2016.
Other general debts during 2015 to 2016 are as follows:
10% 5-year Note Payable dated February
8% 10-year Bonds Payable
8,000,000
10,000,000
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