Recording Costs for Self-Constructed Asset Amethyst Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $170,500 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Required 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. Note: Record debit accounts in alphabetical order using the first letter of the account name. Account Name Dr. Cr. 1. 2. $55.000 88,000 33,000 5.500 2.200 $183,700 Account Name ● 0 # ● • • Dr. 0 0 0 0 0 0 Cr. 0 0 0 0 0 0
Recording Costs for Self-Constructed Asset Amethyst Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $170,500 (fair value) upon completion. Materials Labor Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Required 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. Note: Record debit accounts in alphabetical order using the first letter of the account name. Account Name Dr. Cr. 1. 2. $55.000 88,000 33,000 5.500 2.200 $183,700 Account Name ● 0 # ● • • Dr. 0 0 0 0 0 0 Cr. 0 0 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Recording Costs for Self-Constructed Asset
Amethyst Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $170,500 (fair value) upon completion.
Materials
Labor
Incremental overhead
Interest on construction loan incurred before completion
Interest on construction loan incurred after completion
Total
Required
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.
Note: Record debit accounts in alphabetical order using the first letter of the account name.
Account Name
Dr.
Cr.
1.
2.
$55,000
88,000
33,000
5,500
2,200
$183,700
Account Name
●
+
+
•
✪
●
Dr.
0
0
0
0
0
0
Cr.
0
0
0
0
0
0
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