REQUIRED: For the year ended 31 December 2019 show the following: 1. The Statement of Comprehensive Income Extract for the year 2. The Borrowing cost to be capitalized on the Statement of Financial Position
Galina Construction Limited acquired a loan for $48 million on 1 January 2019 to begin the construction of a bridge. The loan was acquired from National Savings Bank at an effective interest rate of 12%. Construction did not begin on the bridge until, 1 April 2019 and was completed and ready for use on 30 November 2019. The company invested $16m of the funds received from the bank over the period 1 January to 30 June 2019 at an interest rate of 10 %. During the month of August 2019 construction on the project was suspended. REQUIRED: For the year ended 31 December 2019 show the following:
1. The Statement of Comprehensive Income Extract for the year
2. The Borrowing cost to be capitalized on the Statement of Financial Position
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