On January 2, 2025, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished andready for use on September 30, 2026. Expenditures for the construction were as follows:January 2, 2025September 1, 2025December 31, 2025March 31, 2026September 30, 2026$ 60000018000001800000O $391500O $270000O $94500O $29700018000001200000Indian River Groves borrowed $3300000 on a construction loan at 12% interest on January 2, 2025. This loan was outstanding duringthe construction period. The company also had $12000000 in 9% bonds outstanding in 2025 and 2026.The interest capitalized for 2026 was:

Capitalized Interest -The amount borrowed to acquire a long-term asset is called capitalized…

River ady for use on September 30, 2026. Expenditures for the construction were as follows: anuary 2, 2025 eptember 1, 2025 December 31, 2025 $600000 1800000 1800000 March 31, 2026 eptember 30, 2026 1200000 1800000 citrus processing plant. The automated plant was fin dian River Groves borrowed $3300000 on a construction loan at 12% interest on January 2, 2025. This loan was outstan

River ady for use on September 30, 2026. Expenditures for the construction were as follows: anuary 2, 2025 eptember 1, 2025 December 31, 2025 $600000 1800000 1800000 March 31, 2026 eptember 30, 2026 1200000 1800000 citrus processing plant. The automated plant was fin dian River Groves borrowed $3300000 on a construction loan at 12% interest on January 2, 2025. This loan was outstan

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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6) In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,100,000 $ 2,450,000 $ 2,695,000 Estimated costs to complete as of year-end 4,900,000 2,450,000 0 Billings during the year 2,200,000 2,350,000 5,450,000 Cash collections during the year 1,900,000 2,300,000 5,800,000 Westgate recognizes revenue over time according to percentage of completion. 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred…
Sheridan Construction Company has entered into a contract beginning January 1, 2025, to build a parking complex. It has been estimated that the complex will cost $596,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date (a) $256,280 339,720 270,000 Gross profit recognized in 2025 Gross profit recognized in 2026 2025 Sok and Media 240,000 Gross profit recognized in 2027 $ GA $ LA 2026 Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter O. Do not leave any fields blank.) 5 $429,120 166,880 555,000 505,000 2027 $606,000 902,000 902.000
On January 1, 2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 $ 280,000 September 1, 2024 $ 360,000 December 31, 2024 $360,000 March 31, 2025 $ 360,000 September 30, 2025 $ 280,000 The company borrowed $770,000 on a construction loan at 10% interest on January 1, 2024. This loan was outstanding throughout the construction period. The company had $4,600,000 in 10% bonds payable outstanding in 2024 and 2025. Interest (using the specific interest method) capitalized for 2025 was: Multiple Choice A) $57,750. B) $97,070. C ) $113,820. D) $96,000.
Explain clearly
Subject :-Accounting
The company purchased a piece of Equipment on 12/1/2023 for use in its business operations. The company financed this purchase 100% and began using the Equipment immediately. The details of the loan are below: Amount $100,000.00 Interest rate 8% Loan period (months) 24 Payment amount $4, 522.73 Start Date 12/1/23 1. explain why an amortization schedule is important and create one 2. Create the journal entry required to initially record this loan. 3. Create any adjusting entries needed at 12/31/2023. 4. Create the journal entry to record the first payment (assume a 1/1/2024 due date)
On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 October 1, 2024 January 31, 2025 April 30, 2025: August 31, 2025 On January 1, 2024, the company obtained a $4,300,000 construction loan with a 12% interest rate. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. $1,740,000 1,380,000 1,580,000 1,380,000 387,000 720,000 1,017,000 Required: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the specific interest method. 2. What is the total cost of the…
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In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,523,000 $ 3,177,000 $ 1,980,000 Estimated costs to complete as of year-end 6,177,000 1,800,000 0 Billings during the year 2,070,000 3,630,000 4,300,000 Cash collections during the year 1,835,000 3,400,000 4,765,000 Westgate recognizes revenue over time according to percentage of completion. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2025 Cost incurred during the year. Estimated costs to complete as of year-end Billings during the year 2024 $ 2,059,000 5,041,000 2,190,000 $ 2,627,000 2,414,000 2,496,000 2026 $ 2,655,400 0 5,314,000 Cash collections during the year 1,895,000 2,400,000 5,705,000 Westgate recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Revenue Gross profit (loss) 2024 2025 2026
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In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $ 10,000,000. The road was completed in 2026. Information related to the contract is as follows: 2024 2025 2026 Cost incurred during the year $ 2,184,000 $3,510,000 $2,316, 600 Estimated costs to complete as of year-end 5,616,000 2,106, 000 0 Billings during the year 1,800,000 3,894,000 4,306, 000 Cash collections during the year 1,600,000 3,400,000 5,000,000 Assume that Westgate Construction's contract with Santa Clara County does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2024 (credit" Cash, Materials, etc." for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2025 (credit "Cash, Materials, etc." for construction costs…