The following transactions pertain to the general borrowings made during 2021 by Jeon Company in connection with the construction of the company’s new warehouse: • 8% bank loan- P2,400,000 • 6% short-term note- P1,600,000 • 8% long-term note- P2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: • January 1- P400,000 • March 31- P1,000,000 • June 30- P1,200,000 • September 30- P1,000,000 • December 31- P400,000 How much is the capitalizable borrowing cost of Jeon Company?Required to answer. Single choice.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following transactions pertain to the general borrowings made during 2021 by Jeon Company in connection with the construction of the company’s new warehouse: • 8% bank loan- P2,400,000 • 6% short-term note- P1,600,000 • 8% long-term note- P2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: • January 1- P400,000 • March 31- P1,000,000 • June 30- P1,200,000 • September 30- P1,000,000 • December 31- P400,000 How much is the capitalizable borrowing cost of Jeon Company?Required to answer. Single choice.

 
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