User Account

All Pages

Calculate the amount of interest capitalized

Assignment Help Accounting Basics
Reference no: EM13999330

On January 2, 2011, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2012. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2011:

$5,000,000, 12% bonds
$3,000,000, 8% long-term note

Construction expenditures incurred during 2011 were as follows:

January 1 ........$ 600,000
March 31 ........$ 1,200,000
June 30 ........$ 800,000
September 30 .......$ 600,000
December 31 ......$ 400,000

Required:

Calculate the amount of interest capitalized for 2011 using the specific interest method.

Reference no: EM13999330

Questions Cloud

What is the magnetic flux through its cross sectional area : A solenoid has 250 turns in its coil and carries a current of 20.0A. What is the magnitude of the magnetic field inside the solenoid?
How do you interpret the relationship between the data sets : What conclusions can you make about the issue of male and female pay equality - Is the average salary the same for each of the grade levels?
Shagri company began construction on a new manufacturing : On January 1, 2011, the Shagri Company began construction on a new manufacturing facility for its own use.
Develop a brief swot analysis : Choose an anticipated target audience and include a description. Develop a brief SWOT analysis. Analyze potential or existing competition - either direct or substitution
Calculate the amount of interest capitalized : Calculate the amount of interest capitalized for 2011 using the specific interest method.
Determine the magnitude and direction of e at the center : A line charge of uniform density ρ1=2nC/mm forms a semicircle of radius 5 cm in the upper half of xy-plane. Determine the magnitude and direction of E at the center of the semicircle.
Invest sum of money in an account : A city manager wants to invest a sum of money in an account that pays 6% annual interest to cover the monthly operating costs of the city's water treatment plant for the next 6 years. The monthly operating costs for the plant are projected to be $19,..
How is the ecosystem similar to the human body : How is the ecosystem similar to the human body? Provide a description of two ways the human body is similar to the ecosystem
Competitive swimmers hyperventilate : Some competitive swimmers hyperventilate before a race, thinking they can "load up extra oxygen" and hold their breaths longer underwater. While they can indeed hold their breaths longer, it is not for the reason they think. Furthermore, some have lo..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How can you use caats to detect fraud what do you gain by

how can you use caats to detect fraud? what do you gain by using caats to detect

  Flex the budget to take into account the actual level

Flex the budget to take into account the actual level of output and provide an explanation of the difference between the original budget and the flexed budget.

  Starmart manufactures skateboards the company has the

starmart manufactures skateboards. the company has a highly automated production process so itallocates manufacturing

  Balance sheet relative to the lease arrangement

d) What amounts would appear on Ludwick's December 31, 2014, balance sheet relative to the lease arrangement?

  Absorption costing-flexible budget for signet jewelers

Prepare a flexible budget for next year for Signet Jewelers using three different growth rates (assume absorption costing). Explain how you determined the three growth rates to use (the low, the average, the high). Explain how you adjusted all other ..

  The newly established society for ethical teachings

funds are separate fiscal and accounting entities each with its own self-balancing set of accounts.the newly

  Relationship between the expense recognition and accounting

Describe the relationship between the expense recognition (matching) principle and accounting for long-lived assets.

  An aging of a companys accounts receivable indicates that

an aging of a companys accounts receivable indicates that 9000 are estimated to be uncollectible. if allowance for

  For a two sample confidence interval

The Chi-square test results having expected values of less than 5 in a cell may produce a greater likelihood of having type I errors (wrongly rejecting the null hypothesis).

  The expected hosting of several large conventions

Because of an increase in the sales tax from 4 percent to 5 percent and the expected hosting of several large conventions in 2013, sales tax revenues are expected to increase by 20 percent.

  Determine the balances of the accounts affected by the

Cambridge Company is a small editorial services company owned and operated by Dave Maier. On December 31, 2008, the end of the current year, Cambridge Company's accounting clerk prepared the unadjusted trial balance shown at the top of the following ..

  The current controllable margin for frederick division is

the current controllable margin for frederick division is 62000. its current operating assets are 200000. the division

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