Show the solution in good accounting form On January 1, 2020, Katrina Company obtained a loan of P4,000,00o at aninterest rate of 10% specifically to finance the construction of its hewWarehouse. Availments from the loan were made in equal amounts every1 pointquarter of the year. Total borrowing costs amounted to P550,000. Prior totheir disbursements, the proceeds of the loan were temporarily investedand earned interest income amounting to P35,000. The warehouse wascompleted on December 31, 2020. What amount is capitalizable borrowingcost? *

Name: Show the solution in good accounting form On January 1, 2020, Katrina
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Show the solution in good accounting form On January 1, 2020, Katrina Company obtained a loan of P4,000,00o at aninterest rate of 10% specifically to finance the construction of its hewWarehouse. Availments from the loan were made in equal amounts ev

PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Solution Amount P Total borrowing…

Business

Accounting

on January 1, 2020, Katrina Company obtained a loan of P4,000,000 at anpomt interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing Cost? *

on January 1, 2020, Katrina Company obtained a loan of P4,000,000 at anpomt interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing Cost? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency Principle
Assess the impact of measurement bases in the usefulness of accounting report.
Drag and drop the items to complete the diagram of Qualitative Characteristics of accounting information. Free from Error Completeness FAITHFUL REPRESENTATION Verifiability Ingredients of fundamental qualities Materiality Neutrality Understanda- bility Predictive Value Enhancing Qualities Comparability Confirmatory Value Fundamental Qualities Timeliness RELEVANCE
What should be done to apply rate-of-return analysis correctly?
Describe accounting and presentation for research and development and similar costs.
Define solvency and profitability. How are they alike?
Management accounting considers these factors more important than others.a. verifiability, objectivity and accuracyb. relevance, flexibility and timelinessc. consistency and disclosured, authenticity and reliability
Describe accounting concepts useful in classifying costs.
Explain the process of Rate-of-Return Calculation with Excel?
Explain how to calculate net realizable value.
Describe the common profitability measures.
Explain how “balanced scorecard” is used in management accounting systems.