ABC Company had the following general borrowings during 2011 which were used to finance the construction of the entity's new building. Principal Borrowing Cost 10% Bank loan 2,800,000.00 280,000.00 10% short term loan 1,600,000.00 160,000.00 12% long term loan 2,000,000.00 240,000.00 6,400,000.00 680,000.00 The construction began on January 1, 2011 and the building was completed on December 31, 2011. In the first phase of the construction there were idle funds which the entity invested and earned interest income of P62,500. Expenditures on the building were made as follows: 1-Jan 400,000.00 31-Mar 1,000,000.00 30-Jun 1,200,000.00 30-Sep 1,000,000.00 31-Dec 400,000.00

ABC Company had the following general borrowings during 2011 which were used to finance the construction of the entity's new building. Principal Borrowing Cost 10% Bank loan 2,800,000.00 280,000.00 10% short term loan 1,600,000.00 160,000.00 12% long term loan 2,000,000.00 240,000.00 6,400,000.00 680,000.00 The construction began on January 1, 2011 and the building was completed on December 31, 2011. In the first phase of the construction there were idle funds which the entity invested and earned interest income of P62,500. Expenditures on the building were made as follows: 1-Jan 400,000.00 31-Mar 1,000,000.00 30-Jun 1,200,000.00 30-Sep 1,000,000.00 31-Dec 400,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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