On December 31, 2020, Cheyenne Inc., a public company, borrowed $3 millionat 11% payable annually to finance the construction of a new building. In 2021, thecompany made the following expenditures related to this building structure (unlessotherwise noted): March 1, $519,000; June 1, $630,000; July 1, $1.5 million (ofwhich $412,000 was for the roof); December 1, $1.5 million (of which $728,000 wasfor the building HVAC).Additional information follows:1. Other debt outstanding:$5-million, 10-year, 12% bond, dated December 31, 2013, with interest payableannually$1.5-million, six-year, 10 % note, dated December 31, 2017, with interest payableannually2. The March 1, 2021 expenditure included land costs of $147,000.3. Interest revenue earned in 2021 on the unused idle construction loan amountedto $52,400.PART 2Prepare the journal entry to record the capitalization of borrowing costs and therecognition of interest expense, if any, at December 31, 2020. (Credit account titlesare automatically indented when the amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter 0 for theamounts. Do not round intermediate calculations. Round capitalization rate to 2decimal places, e.g. 52.75% and final answers to 0 decimal places, e.g. 5,275.)

Name: On December 31, 2020, Cheyenne Inc., a public company, borrowed $3 mi
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: On December 31, 2020, Cheyenne Inc., a public company, borrowed $3 millionat 11% payable annually to finance the construction of a new building. In 2021, thecompany made the following expenditures related to this building structure (unlessotherwise

Capitalized cost refers to the borrowing cost that is required to construct a long-term asset.

Answered: Prepare the journal entry to record the…

Business

Accounting

Prepare the journal entry to record the capitalization of borrowing costs and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatic

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

Please help me. Thankyou.
Prepare all necessary journal entries for Sheridan for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record the lease) (To record the first lease payment) Debit 110 Credit
On 31 December 20X7, a company has the following bond on the statement of financial position: Bond payable, 7%, interest due semi-annually on 31 Dec. and 30 June; maturity date, 30 June 20X11 Premium on bonds payable $6, 200,000 52,080 $6,252,080 On 28 February 20X8, 20% of the bond was retired for $1,364,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $500, representing amortization on the retired debt only. Required: Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note payable. The terms call for annual installment payments of $113,262 on December 31.
Subject: accounting
These financial statement items are for Wildhorse Co. at year-end, July 31, 2017. $ 3,880 Salaries and wages payable Salaries and wages expense 59,200 Supplies expense 17,000 Equipment 20,300 Accounts payable 4,100 Service revenue 67,800 Rent revenue 9,900 Notes payable (due in 2020) 2,900 Common stock 16,000 Cash 30,900 Accounts receivable 10,880 Accumulated depreciation-equipment 7,600 Dividends 4,000 Depreciation expense 5,600 Retained earnings (beginning of the year) 35,700
Transaction 1 The 100 employees of NAM JEWELS LIMITED are each entitled to 5 working days of paid sick leave for each year. Unused sick leave may be carried forward for one calendar year. Sick leave is taken first out of the current year's entitlement and then out of any balance brought forward from the previous year (a LIFO basis). At 31 December 2019 the average unused entitlement is 2 days per employee. The entity expects, on the basis of experience that is expected to continue, that 92 employees will take no more than five days of paid sick leave in 2020 and that the remaining 8 will take an average an of six and a half days each. In December 2020 to restructure its workforce (which was immediately communicated) in such a way that all employees of the age of 55, but below the age of 60 at the reporting date, could retire immediately should they choose to do so. Employees of 60 years and older, up to 65 years at the statement of financial position date, will be forced to retire…
Whispering Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $54,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Whispering's incremental borrowing rate is 8%. Whispering is unaware of the rate being used by the lessor. At the end of the lease, Whispering has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Whispering uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables.
View transaction list Journal entry worksheet 2 Record the first installment payment on October 31, 2021. Assume no reversing entries were prepared. Note: Enter debits before credits. Date October 31 General Journal Debit Credit View general journal Record entry Clear entry
make journal entries for recording interest income and interest received and recognition of FV at dec31, 2023, 2024, and 2025. the entries should be: to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record gain or loss Dont use AI Tools. Thank you
https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
Brief Exercise 9-12 (Algo) Record bond issue at a discount and related annual interest (LO9-5) Pretzelmania, Incorporated, issues 5%, 20-year bonds with a face amount of $68,000 for $60,200 on January 1, 2024. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue on January 1, 2024 and first interest payment on December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Round final answers to the nearest whole dollar.) View transaction list Journal entry worksheet