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$ 8,000,000 at 10% $ 6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. or interest calculations, use 2 decimal points)

$ 8,000,000 at 10% $ 6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. or interest calculations, use 2 decimal points)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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4. The Lambert Company begins a two-year construction project on a new building on January 1, 2018. The following information is available: Capitalization period: January 1, 2018 - June 30, 2019 Expenditures related to the construction: 2018 January 1 April 1 October 1 December 1 2019 January 1 April 1 $ $ 300,000 600,000 700,000 400,000 500,000 100.000
Transcribed Image Text:4. The Lambert Company begins a two-year construction project on a new building on January 1, 2018. The following information is available: Capitalization period: January 1, 2018 - June 30, 2019 Expenditures related to the construction: 2018 January 1 April 1 October 1 December 1 2019 January 1 April 1 $ $ 300,000 600,000 700,000 400,000 500,000 100.000
2019 January 1 April 1 $ 500,000 * 100,000 *Only includes construction costs incurred in January 2019. Amounts borrowed and outstanding: $ 1,000,000 at 9% borrowed specifically for the project $ 8,000,000 at 10% $ 6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. For interest calculations, use 2 decimal points)
Transcribed Image Text:2019 January 1 April 1 $ 500,000 * 100,000 *Only includes construction costs incurred in January 2019. Amounts borrowed and outstanding: $ 1,000,000 at 9% borrowed specifically for the project $ 8,000,000 at 10% $ 6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. For interest calculations, use 2 decimal points)
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