Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $124,000 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized to the building. Account Name Dr. Cr. To record the costs of construction. Building $40,000 64,000 24,000 4,000 1,600 $133,600 To record the completion of the building. V V 0 0 0 124,000 0 0 0x ох 0x 0✔ 0x 0x
Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $124,000 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized to the building. Account Name Dr. Cr. To record the costs of construction. Building $40,000 64,000 24,000 4,000 1,600 $133,600 To record the completion of the building. V V 0 0 0 124,000 0 0 0x ох 0x 0✔ 0x 0x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Recording Costs for Self Constructed Asset
Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $124,000 (fair value) upon completion.
Materials
Labor
Incremental overhead
Interest on construction loan incurred before completion
Interest on construction loan incurred after completion
Total
Account Name
Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized to the building.
Dr.
To record the costs of construction.
Building
$40,000
64,000
24,000
To record the completion of the building.
4,000
1,600
$133,600
V
V
0
0
0
124,000
0
0
Cr.
0x
0x
0x
0✔
0x
0x
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