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Yawyag Corporation engaged Sir Peter, Inc. to design and construct a manufacturing facility. Construction began on January 2 of Year 1 and was completed on October 1 of Year 2. The following payments were made to the contractor during Year 1 and Year 2. (Click the icon to view payments.) (Click the icon to view additional information.) (Click the icon to view the interest capitalized in Year 1.). Read the requirements. Show Transcribed Text Year Year 1 Year 2 Date January 2 August 1 October 1 December 1 April 1 August 1 Show Transcribed Text 3 Show Transcribed Text To specifically finance the project, Yawyag issued $2,800,000 of 3-year, 5% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Yawyag had other debt in its capital structure. All general debt is outstanding as of the beginning of Year 1. The general debt consists of $5,000,000 par value, 6% bonds payable and a $1,000,000, 9% note payable. Both debt instruments require annual interest payments each December 31. On January 2 of Year 2, Yawyag was required to take out a $2,400,000, 9% line of credit to help finance its operating cycle. Amount $ 2,400,000 1,800,000 3,600,000 1,200,000 900,000 1,800,000 3 During Year 1, Yawyag accumulated $9,000,000 of expenditures and capitalized $227,750 of interest into the construction in progress account related to the construction of the manufacturing facility.

Yawyag Corporation engaged Sir Peter, Inc. to design and construct a manufacturing facility. Construction began on January 2 of Year 1 and was completed on October 1 of Year 2. The following payments were made to the contractor during Year 1 and Year 2. (Click the icon to view payments.) (Click the icon to view additional information.) (Click the icon to view the interest capitalized in Year 1.). Read the requirements. Show Transcribed Text Year Year 1 Year 2 Date January 2 August 1 October 1 December 1 April 1 August 1 Show Transcribed Text 3 Show Transcribed Text To specifically finance the project, Yawyag issued $2,800,000 of 3-year, 5% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Yawyag had other debt in its capital structure. All general debt is outstanding as of the beginning of Year 1. The general debt consists of $5,000,000 par value, 6% bonds payable and a $1,000,000, 9% note payable. Both debt instruments require annual interest payments each December 31. On January 2 of Year 2, Yawyag was required to take out a $2,400,000, 9% line of credit to help finance its operating cycle. Amount $ 2,400,000 1,800,000 3,600,000 1,200,000 900,000 1,800,000 3 During Year 1, Yawyag accumulated $9,000,000 of expenditures and capitalized $227,750 of interest into the construction in progress account related to the construction of the manufacturing facility.

FINANCIAL ACCOUNTING
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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Date (Current Year) January 1 Beginning Construction in Progress April 1 August 1 Total Accumulated Expenditure Weighted-Average Accumulated Expenditures
Transcribed Image Text:Date (Current Year) January 1 Beginning Construction in Progress April 1 August 1 Total Accumulated Expenditure Weighted-Average Accumulated Expenditures
Yawyag Corporation engaged Sir Peter, Inc. to design and construct a manufacturing facility. Construction began on January 2 of Year 1 and was completed on October 1 of Year 2. The following payments were made to the contractor during Year 1 and Year 2. (Click the icon to view payments.) (Click the icon to view additional information.) (Click the icon to view the interest capitalized in Year 1.) Read the requirements. Show Transcribed Text Year Year 1 Year 2 Date January 2 August 1 October 1 December 1 April 1 August 1 Show Transcribed Text Amount $ 2,400,000 1,800,000 3,600,000 1,200,000 900,000 1,800,000 Show Transcribed Text Ć To specifically finance the project, Yawyag issued $2,800,000 of 3-year, 5% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Yawyag had other debt in its capital structure. All general debt is outstanding as of the beginning of Year 1. The general debt consists of $5,000,000 par value, 6% bonds payable and a $1,000,000, 9% note payable. Both debt instruments require annual interest payments each December 31. On January 2 of Year 2, Yawyag was required to take out a $2,400,000, 9% line of credit to help finance its operating cycle. During Year 1, Yawyag accumulated $9,000,000 of expenditures and capitalized $227,750 of interest into the construction in progress account related to the construction of the manufacturing facility.
Transcribed Image Text:Yawyag Corporation engaged Sir Peter, Inc. to design and construct a manufacturing facility. Construction began on January 2 of Year 1 and was completed on October 1 of Year 2. The following payments were made to the contractor during Year 1 and Year 2. (Click the icon to view payments.) (Click the icon to view additional information.) (Click the icon to view the interest capitalized in Year 1.) Read the requirements. Show Transcribed Text Year Year 1 Year 2 Date January 2 August 1 October 1 December 1 April 1 August 1 Show Transcribed Text Amount $ 2,400,000 1,800,000 3,600,000 1,200,000 900,000 1,800,000 Show Transcribed Text Ć To specifically finance the project, Yawyag issued $2,800,000 of 3-year, 5% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Yawyag had other debt in its capital structure. All general debt is outstanding as of the beginning of Year 1. The general debt consists of $5,000,000 par value, 6% bonds payable and a $1,000,000, 9% note payable. Both debt instruments require annual interest payments each December 31. On January 2 of Year 2, Yawyag was required to take out a $2,400,000, 9% line of credit to help finance its operating cycle. During Year 1, Yawyag accumulated $9,000,000 of expenditures and capitalized $227,750 of interest into the construction in progress account related to the construction of the manufacturing facility.
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