General Corporation has the following restricted cash items reported on its balance sheet dated December 31, 2020:Bonds to be paid in full on January 1, 2022;$700,000Warranty claims to be paid during 2021;22,500Workers compensation claims to be paid equally for the next 10 years:2,000,000Cleanup costs related to mine excavation to be completed by October 31, 2021. 1,500,000What amount of restricted cash should General Corporation report as current assets?$2,422,500$1,722,500Ⓒ$4,222,500$3,522,500

In accounting, current liabilities are often understood as all liabilities of the business that…

Answered: General Corporation has the followi

Business

Accounting

General Corporation has the followi

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $2,000,000, 8% note $8,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2021 $ 400,000September 30, 2021 600,000November 30, 2021 600,000January 30, 2022 540,000 The company’s fiscal year-end is December 31.Required:Calculate the amount of interest capitalized for 2021 and 2022.
A Corporation began construction work in 2019 for a project with a contract price of P8,000,000. The Corporation uses the percentage-of-completion (Over time) method. The financial statements for 2019 relating to the contract shows the following: Accounts receivable P500,000 Construction in progress 1,600,000 Progress billings to date 1,500,000 Gross profit earned in 200,000 1.) Compute the cash collections for the year 2019 2.) Compute the costs incurred to date on the year 2019.
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows: January 1 $ 500,000March 1 600,000July 31 480,000September 30 600,000December 31 300,000 Required:Calculate the amount of interest capitalized for 2021.
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thonton does have the following two interest-bearing liabilities that were outstanding throughout the construction perlod: $3,000, 000, 12% note $7,000, 000, 7X bonds Construction expenditures Incurred were as follows: July 1, 2021 Septenber 30, 2021 November 30, 2021 January 30, 2022 $ 700,000 990,000 990, 000 930,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitallized for 2021 and 2022. Complete this question by entering your answers in the tabs below. 2021 2022
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: B 4 12% bonds Long-term note, 8% Required: Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 1 $600,000 $1,200,000 $800,000 $600.000 $300,000 Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place.) Expenditure Average Date January 1 March 31 June 30 September 30 December 1 Avg. accumulated expenditures 5,000,000 3,000,000 Average accumulated expenditures X X X X X Amount Weight X X IIII|| Interest Rate P Capitalized Interest
The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: Cash Sales Sales Month On Account Purchases August September October $85,000 $70,000 $88,550 $77,160 $174,870 $640,000 $550,000 $600,000 $800,000 $500,000 $420,000 $550,000 $500,000 $600,000 $450,000 November December An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: i) 50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms - 2/30, n60: ii) 60% in the month in…
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Klutlan Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Klutlan does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $2,000,000, 8% note $8,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, 2018 $520,000 September 30, 2018 600,000 November 30, 2018 600,000 January 30, 2019 540,000 The company's fiscal year-end is December 31. Question The total value of the warehouse at the end of construction would be: a $2,288,000 b $2,317,702 c $1,745,760 d $2,260,000
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31,2019. No new loans were required to fund construction. Thornton does have the following two interest-bearingliabilities that were outstanding throughout the construction period:$2,000,000, 8% note$8,000,000, 4% bondsConstruction expenditures incurred were as follows:July 1, 2018 $400,000September 30, 2018 600,000November 30, 2018 600,000January 30, 2019 540,000The company’s fiscal year-end is December 31.Required:Calculate the amount of interest capitalized for 2018 and 2019.
On January 1,2021, Gale Co. sold delivery equipment costing ₱1,000,000 with accumulated depreciation of ₱150,000 in exchange for a 3-year, ₱1,800,000 noninterest-bearing note receivable due as follows: Expected date of collection Amount of cash flow 31-Dec-2021 ₱1,000,000 31-Dec-2022 600,000 31-Dec-2023 200,000 ₱1,800,000 The prevailing rate of interest for this type of note is 12%. Based on the above data, answer the following: 1. How much is the gain or loss on sale of delivery equipment in 2021? a. Nil c. ₱513,580 b. ₱663,580 d. ₱1,513,580 2. How much is the interest income of 2021? a. Nil c. ₱83,425 b. ₱181,630 d. ₱188,728 3. How much is the carrying amount of the note on December 31,2021? a. ₱695,210 c. ₱178,635 b. ₱876,008 d. ₱512,399 4. How much is current portion of the note on December 31,2021? a. ₱600,000 c. ₱83,425 b. ₱516,575 d. ₱178,635 5. How much is the noncurrent portion of note on December 31,2021? a. ₱600,000 c. ₱83,425 b. ₱516,575 d. ₱178,635