Testbank Multiple Choice Question 79On March 1, 2020, Sunland Company purchased land for an office site by paying $2770000 cash. Sunland began construction on the office building on March 1. The following expenditures wereincurred for construction:DateExpendituresMarch 1, 2020$1890000April 1, 2020May 1, 202025400004520000June 1, 20204820000The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Otherthan the construction note, the only debt outstanding during 2020 was a $1470000, 12%, 6-year note payable dated January 1, 2020.The actual interest cost incurred during 2020 was$441900.$412500.O $247500.O $495000.

Accrued Interest is the part of interest expense which has been incurred in the current financial…

The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1470000, 12%, 6-year note payable dated January 1, 2020. The actual interest cost incurred during 2020 was O $441900.

The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1470000, 12%, 6-year note payable dated January 1, 2020. The actual interest cost incurred during 2020 was O $441900.

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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