Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended portion of the loan amounted to $644,280 for the year. How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021? Capitalized interest on Grouper's financial statements 2$ 190806 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer DELL F12 PrtScr E10 E11

Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended portion of the loan amounted to $644,280 for the year. How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021? Capitalized interest on Grouper's financial statements 2$ 190806 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer DELL F12 PrtScr E10 E11

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

Novak, Inc. has a fiscal year ending April 30. On May 1, 2020, Novak borrowed $10,728,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted-average accumulated expenditures were $3,754,800. Interest earned on the unexpended portion of the loan amounted to $697,320 for the year.How much should be shown as capitalized interest on Novak’s financial statements at April 30, 2021? Capitalized interest on Novak’s financial statements $
Pearl, Inc. has a fiscal year ending April 30. On May 1, 2020, Pearl borrowed $9,636,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted- average accumulated expenditures were $3,372,600. Interest earned on the unexpended portion of the loan amounted to $626,340 for the year. How much should be shown as capitalized interest on Pearl's financial statements at April 30, 2021? Capitalized interest on Pearl's financial statements 2$
Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended portion of the loan amounted to $644,280 for the year. How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021? Capitalized interest on Grouper's financial statements 190806
On January 1, 2020, Christine Company borrowed P30,000,000 at 12% to finance partly the construction of building and partly for general purposes. The loan shall be repaid commencing the month following completion of the building. Expenditures for the completed structure totaled P25,000,000 during the year ended December 31, 2020. These expenditures were incurred evenly throughout the year. Christine Company earned interest of P200,000 for the year on the unexpended portion of the loan. 1. What amount of interest is capitalized as cost of building on December 31, 2020? 2. If the company is an SME, what is the cost of the building on December 31, 2020?
Culver Inc. has a fiscal year ending April 30. On May 1, 2023, Culver borrowed $10 million at 11% to finance construction of its own building. Repayments of the loan are to begin the month after the building's completion. During the year ended April 30, 2024, expenditures for the partially completed structure totalled $7 million. These expenditures were incurred evenly throughout the year. Interest that was earned on the part of the loan that was not expended amounted to $482,000 for the year. For situation 3, how much should be shown as capitalized borrowing costs on Culver's financial statements at April 30, 2024? (If an answer is zero, please enter O. Do not leave any fields blank.) Capitalized borrowing $
On January 1, 2020, Karakaraka Co. started construction of a new office building on January 1, 2020, and moved into the finished building on July 1, 2021. Of the P25,000 total cost of the building, P20,000 was incurred in 2020 evenly throughout the year. The entity’s incremental borrowing rate was 12% throughout 2020, and the total amount of interest incurred was P1,020,000. What amount should be reported as capitalized interest on December 31, 2020?
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. 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 2021: $5,000,000, 12% bonds $3,000,000, 8% long-term note Construction expenditures incurred during 2021 were as follows:January 1 $ 600,000March 31 1,200,000June 30 800,000September 30 600,000December 31 400,000Required:Calculate the amount of interest capitalized for 2021 using the specific interest method.
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,150,000 at 9% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $8,000,000, 14% bonds $2,000,000, 9% long-term note Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 31 Date $ 880,000 1,480,000 1,136,000 Required: Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the Intermediate calculations. Round your percentage answers to 1 decimal place (l.e. 0.123 should be entered as 12.3%).) January 1 March 31 June 30 September 30 December 31 Accumulated expenditure 880,000 680,000 Average accumulated expenditures Expenditure Amount x x X X X X Weight Interest Rate %6 %6 = = = = = Average Capitalized Interest
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. 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 2021: B 4 12% bonds Long-term note, 8% Required: Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 1 $600,000 $1,200,000 $800,000 $600.000 $300,000 Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place.) Expenditure Average Date January 1 March 31 June 30 September 30 December 1 Avg. accumulated expenditures 5,000,000 3,000,000 Average accumulated expenditures X X X X X Amount Weight X X IIII|| Interest Rate P Capitalized Interest
During 2021, New Era Inc. constructed assets costing $1,000,000. The weighted-average accumulated expenditures on these assets during 2021 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2021 , and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2015. What is the amount of interest that should be capitalized by New Era Inc. during 2021? $
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $5,400,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 12% $ 1,350,000 Long-term note, 11% 1,800,000 Long-term note, 8% 3,600,000 Required:Calculate the amount of interest capitalized in 2021 for the building using the specific interest method.
During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average accumulated expenditure on these assets during 2019 was P2,500,000. To help finance the construction, P1, 800,000 was borrowed at 10% on January 1, 2019, and funds not needed for construction were temporarily invested in short-term securities, yielding P45,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P2,500,000, 10-year, 9% notes payable dated January 1, 2019. What is the amount of interest that should be capitalized by Bing during 2019?