2013年10月14日星期一

Interest capitalized accounting question?

  • factoring company
I need help with this problem. Thanks!


On January 1, 2013, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2014. 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 2013:



$5,000,000, 12% bonds

$3,000,000, 8% long-term note


Construction expenditures incurred during 2013 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 2013 using the specific interest method. (Do not round intermediate calculations.)

Interest capitalized accounting question?

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