sh Furniture Company started construction of a combination office and warehouse building for its own use at an est ,500,000 on January 1, 2025. Splish expected to complete the building by December 31, 2025. Splish has the followi gations outstanding during the construction period. Onstruction loan-12% interest, payable semiannually, issued December 31, 2024 ort-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2026 ng-term loan- 11% intere $5,800,000 4,350,000
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- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)Vania Magazines started construction of a warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2019, and completed the building on December 31, 2019. During the construction period, Vania has the following debt obligations outstanding. Construction loan—12% interest, payable semiannually, issued December 31, 2018 $2,000,000 Short-term loan—10% interest, payable monthly, and principal payable at maturity, on May 30, 2020 1,400,000 Long-term loan—11% interest, payable on January 1 of each year; principal payable on January 1, 2022 1,000,000 Total cost amounted to $5,200,000, and the weighted average of accumulated expenditures was $3,500,000.Jane Esplanade, the president of the company, has been shown the costs associated with this construction project and capitalized on the balance sheet. She is bothered by the “avoidable interest” included in the cost. She argues that, first, all the interest is unavoidable—no one lends money…CraneFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $14,000,000 on January 1, 2020. Crane expected to complete the building by December 31, 2020. Crane has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,600,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 4,200,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,800,000 Assume that Crane completed the office and warehouse building on December 31, 2020, as planned at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable interest on this project.
- Saleh Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $2,500,000 on January 1, 2020. Saleh expected to complete the building by December 31, 2022. Saleh has the following debt obligations outstanding during the construction period. Construction loan – 15% interest, payable semiannually, issued December 31, 2021 $1,000,000 Short-term loan – 10% interest, payable monthly, and principal payable at maturity on May 30, 2022 700,000 Long-term loan – 11% interest, payable on January 1 of each year. Principal payable on January 1, 2026 500,000 Instructions (Carry all computations to two decimal places.) (a). Assume that Saleh completed the office and warehouse building on December 31, 2022, as planned, at a total cost of $2,600,000, and the weighted average of accumulated expenditures was $1,800,000. Compute the avoidable interest on this project. (b). Compute the depreciation expense for the year ended…SandhillFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Sandhill expected to complete the building by December 31, 2020. Sandhill has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,000,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,000,000 (a) Correct answer icon Your answer is correct. Assume that Sandhill completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to…SandhillFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Sandhill expected to complete the building by December 31, 2020. Sandhill has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,000,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,000,000 (a) Assume that Sandhill completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational…
- BlossomFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $7,000,000 on January 1, 2020. Blossom expected to complete the building by December 31, 2020. Blossom has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $2,800,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 1,960,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,400,000 Assume that Blossom completed the office and warehouse building on December 31, 2020, as planned at a total cost of $7,280,000, and the weighted-average amount of accumulated expenditures was $5,040,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final…NovakFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $14,000,000 on January 1, 2020. Novak expected to complete the building by December 31, 2020. Novak has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,600,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 4,200,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,800,000 Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers…Headland Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $7,500,000 on January 1, 2020. Headland expected to complete the building by December 31, 2020. Headland has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $3,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,100,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,500,000 Assume that Headland completed the office and warehouse building on December 31, 2020, as planned at a total cost of $7,800,000, and the weighted-average amount of accumulated expenditures was $5,400,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes…
- Vaughn Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Vaughn expected to complete the building by December 31, 2020. Vaughn has the following debt obligations outstanding during the construction period. Construction loan-10% interest, payable semiannually, issued December 31, 2019 $4,000,000 Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,800,000 Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,000,000 Assume that Vaughn completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round…BlueFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $ 7,000,000 on January 1, 2020. Blue expected to complete the building by December 31, 2020. Blue has the following debt obligations outstanding during the construction period. Construction loan- 12% interest, payable semiannually, issued December 31, 2019 $ 2,800,000 Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,100,000 Long-term loan- 11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,400,000BlueFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $ 7,000,000 on January 1, 2020. Blue expected to complete the building by December 31, 2020. Blue has the following debt obligations outstanding during the construction period. Construction loan- 12% interest, payable semiannually, issued December 31, 2019 $ 2,800,000 Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,100,000 Long-term loan- 11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,400,000 (a) Assume that Blue completed the office and warehouse building on December 31, 2020, as planned at a total cost of $ 7,280,000, and the weighted-average amount of accumulated expenditures was $ 5,040,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to O decimal…