Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction. Specific borrowing ---P800,000, 16% due January 1, 2023 General borrowing ---P500,000, 18% due December 31, 2024 What is the total cost of the building?

Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction. Specific borrowing ---P800,000, 16% due January 1, 2023 General borrowing ---P500,000, 18% due December 31, 2024 What is the total cost of the building?

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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