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 $155,000 (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 t Account Name Dr. Cr. 155,000 Building Land To record the costs of construction, Building interest Expense $50,000 80,000 30.000 5,000 2,000 $167,000 To record the completion of the building. 155,000 0

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 $155,000 (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 t Account Name Dr. Cr. 155,000 Building Land To record the costs of construction, Building interest Expense $50,000 80,000 30.000 5,000 2,000 $167,000 To record the completion of the building. 155,000 0

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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Which of the following are the capitalized coats of the land and the new building, respectively?
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