User Account

All Pages

Using specific interest method-calculate amount of interest

Assignment Help Financial Accounting
Reference no: EM131265037

On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 $ 1,280,000 March 1, 2016 720,000 June 30, 2016 920,000 October 1, 2016 720,000 January 31, 2017 288,000 April 30, 2017 621,000 August 31, 2017 918,000 On January 1, 2016, the company obtained a $3,200,000 construction loan with a 15% interest rate. The loan was outstanding all of 2016 and 2017. The company’s other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with interest rates of 11% and 13%, respectively. Both notes were outstanding during all of 2016 and 2017. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required: 1. Calculate the amount of interest that Mason should capitalize in 2016 and 2017 using the specific interest method.

Reference no: EM131265037

Questions Cloud

What is your best estimate of the number of retirements : Interpret the slope, intercept, and coefficient of determination, and test the slope for significance. What is your best estimate of the number of retirements next month if there are 620 employees older than 60? Could this number be as high as 30?
Write an e mail or memo to mr kaufman : Ms. Ho usually is part of the selection process.- Write an e-mail or memo to Mr. Kaufman including all the information he needs.
Describe the ethics and lobbying laws : Explain any ethical dilemmas that could arise during your advocacy campaign, and how you would resolve them. Describe the ethics and lobbying laws that are applicable to your advocacy campaign. Evaluate the special ethical challenges that are..
Develop a strategy for a new product : Connect your Oreo conclusions to how you would develop a strategy for a new product, like the sensors your company is developing in the Capsim simulation. Consider how your team would apply the strategic planning model and measure your success in ..
Using specific interest method-calculate amount of interest : On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017. Calculate the amount of interest that Mason should capitalize in 2016 and 20..
Analyze the significance of the research interventions : Specify the differences between the interventions found in the four articles and if the interventions found in the four articles are currently in use or proposed for future used that addressed the problems and the recommendations to improve the pr..
Determining the environmental scanning : Today's managers need to follow worldwide current events to track new markets, customer preferences, competitors, new technology, and investment opportunities. Select one of the following three general news Web sites (or one of your own choosing) ..
What conclusions are evident from your trend analysis : What conclusions are evident from your trend analysis? Justify your answers and explain how these findings might be relevant to the investor and the management of the company.
Learn about dress expectations in saudi arabia : Visit two or three Web sites and learn about dress expectations in Saudi Arabia. -Is Western-style clothing acceptable for men?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Plain how you would explore the best practices of technology

Explain how you would explore the best practices of technology in use in an HRM office. What factual information would you share to convince the business leaders of the value of new HRM technology changes? Provide a thorough explanation.

  Grand company uses job-order costing system

Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and ..

  What amount should rama show in notes

At December 31, year 2, what amount should Rama show in notes to financial statements as a restriction of retained earnings as a result of its treasury stock transactions?

  Prepare new contribution format income statement

Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales (7,900 units) $ 252,800 $ 32.00 Variable expenses 150,100 19.00 Contribution margin 102,700 $ 13.00 Fixed expenses 55,100 Net operating income $ 47,600 Required: P..

  Supplier under the perpetual inventory system

The entry to record the return of $25 of inventory to a supplier under the perpetual inventory system is recorded with a debit to _____.

  Cost of goods sold using the FIFO and LIFO methods

Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method?

  What is the future value

What is the Future Value at year 8, of a $3,000 inflow at time zero (instantly), and a $1,000 outflow 6 years from now and a $4,000 inflow 7 years from now? Assume an interest rate of 10% for years 1, 2 and 3, 8% for years 4 and 5, and 15% for years ..

  Illustrate what total amount should houghton company report

Houghton company has the following items: common stock, $900,000; treasury stock, $105,000; deferred taxes, $125,000 and retained earnings, $390,000. Illustrate what total amount should Houghton Company report as stockholders' equity?

  Substitute this guess into the model

All sums in the solution must be evaluated for the solution to be complete. If you solve the model by guessing a solution, substitute this guess into the model to con firm that the guess is correct.

  Multiple choice question based on variance analysis

Multiple choice question based on Variance Analysis - The direct material price variance for May is (note that the purchase price variance is based on the amount purchased

  Review targets dividend policy and its history

Determine how Target got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response. Review Target’s dividend policy and its history. Based on the information, discuss the trends over the past year.

  Complete cost reduction program for green financial

On January 1 Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $56,000 from Green at the end of each month. If total cost savings reach a specific target, Rev..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd