On March 1, 2010, Dennis Company purchased land for an office site by paying$540,000 cash. Dennis began construction on the office building on March 1.The following expenditures were incurred for construction:March 1, 2010 - $360,000April 1, 2010 - $504,000May 1, 2010 - $900,000June 1, 2010 - $1,440,000The office was completed and ready for occupancy on July 1. To help pay forthe construction, $720,000 was borrowed on March 1, 2010 on a 9%, 3-yearnote payable. Other than the construction note, the only debt outstandingduring 2010 was a $300,000, 11%, 6-year note payable dated January 1, 2010.(Hint: Be sure to include the cost of land in the total March 1 expenditureamount)Use commas, but do not use $ signs or cents.1. How much are the weighted-average accumulated expenditures on theconstruction project during 2010? How much was the actual interest cost during 2010?Question 82.5 ptsAssume the weighted average accumulated expenditures for the constructionproject are $870,000.What is the amount of interest cost to be capitalized for 2010?

Step 1 - Weighted-Average Accumulated ExpendituresTo determine the amount of interest cost to be…

Answered: On March 1, 2010, Dennis Company…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Dhapa
Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. Costs incurred during the year were as follows: January 1-P400,000 April 1 - P500,000 August 1 - P480,000 December 1- P180,000 To help finance the construction of the building, the company obtained a two-year, 12% loan of P1,000,000. Prior to the disbursement of the loan proceeds, it was temporarily invested and earned interest income of P15,000. During the year 2021, the company has also general borrowings as follows: 10% Notes Payable, due March 1, 2023 - P1,000,000 12% Notes Payable, due Dec. 31, 2024-P1,500,000 How much interest is capitalized?
New energy-efficient windows were installed for a total cost of $375,000. The company received a government grant, in the form of cashback for 15% of the total cost. The windows have a 15-year useful life and are depreciated on a straight-line basis. Prepare the journal entries required in the year of purchase using the: 1) Net method 2) Deferral method
The City of Houghton bought new municipal sewage equipment in the year 2010. The equipment cost 122,325 dollars and the city spent an additional 19,080 dollars for installation. The sewage equipment was put into service on June 1st, 2010 and the city removed the equipment from service on September 12, 2022. Using the US Straight Line Depreciation Schedule, estimate the total value of depreciation recorded in the accounting books for the years 2010 through 2022 (i.e. calculate the sum of depreciation in each year for years 2010 through 2022). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas; do not round the recovery factors from the depreciation tables)
Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,960,000 on March 1, $2,640,000 on June 1, and $6,600,000 on December 31. Bonita Company borrowed $2,200,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $4,400,000 note payable and an 11%, 4-year, $7,700,000 note payable. Compute avoidable interest for Bonita Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to O decimal places, eg. 5,275.) Avoidable interest %24
Denzil Co. purchased land as a factory site for $600,000. Denzil paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect’s fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,200,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. What is the cost of the land that should be recorded by Denzil Co.? $
Munabhai
Dominion construction is awarded a contract to build a commercial building. The contract price is $1,500,000 and during the first month of the job, the following transactions occurred: Cash expenditures to date $300,000 Total expenditures to date $350,000 Estimated expenditure to complete $1,100,000 Total estimated expenditures $1,450,000 Billing to date $280,000 Cash collected to date $250,000 What is "Revenue to Date" in Cash Method? 350000 280000 250000 300000
Northwest Delivery Company acquired an adjacent lot to construct a new warehouse, paying $75,000 and giving a short-term note for $90,000. Legal fees paid were $2,500, delinquent taxes assumed were $22,400, and fees paid to remove an old building from the land were $14,500. Materials salvaged from the demolition of the building were sold for $7,500. A contractor was paid $660,000 to construct a new warehouse. Determine the Cost of the land to be reported on the balance sheet.
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,400; remodeling of offices, $22,000; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,000; addition of a security system to the manufacturing facility, $25,000. How should Demmert account for each of these expenditures?
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9. On March 1, 2007, Mourinho Company purchased land for an office site by paying $540,000 cash. Mourinho began construction on the office building on March 1. The following expenditures were incurred for construction: 1,360,000 March 2007 April 1, 2007 May 1, 2007 June 1, 20071,440,000 504,000 900,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2007 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2007 was $300,000, 12%, 6-year note payable dated January 1, 2007. The weighted- average accumulated expenditures on the construction project during 2007 were a. $384,000 b. $2,934,000 c. $312,000 d. $696,000

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