ACC 326 Financial Accounting-Intermediate Assignment

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ACC 326 Financial Accounting-Intermediate Assignment - University of Texas, USA

Problem - A firm began the construction of its new manufacturing facility in January of 20x2. The following expenditures were made on construction in that year:

Jan. 1 $40,000

Mar. 1 120,000

Oct. 3 196,000

Debt outstanding the entire year: 6%, $60,000 construction loan 4%, $90,000 note payable not related to construction 6%, $90,000 note payable not related to construction.

Required - Compute interest to be capitalized using the specific method (use the construction loan first).

Reference no: EM132452096

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