On december 31, 2013, main inc borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. in 2014, the company made the following expenditures related to this building: march 1 $360,000; june 1, $600,00, july 1 $1,500,000; december 1, $1,500,00. the building was completed in february 2015. additional information is provided as follows.
1) other debt outstanding
10-year, 13% bond, december 31, interest payable annually $4,000,000
6-year, 10% note, dated december 31, 2011, interest payable annually $1,600,000
2) march 1, 2014, expenditure included land cost of $150,000
3) interest revenue earned in 2014 $ 49,000
instructions;
a) determine the amount of interest to be capitalized in 2014 in relation to the construction of the building.
b) prepare the journal entry to record the capitalization of interest and recognition of interest expense, if any, at december31, 2014.
Answers: 2
Business, 22.06.2019 14:30
Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?
Answers: 1
Business, 22.06.2019 20:40
Helen tells her nephew, bernard, that she will pay him $100 if he will stop smoking for six months. helen was hopeful that if bernard stopped smoking for six months, he would stop altogether. bernard stops smoking for six months but then resumes his smoking. helen will not pay him. she says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at least implied that he would stop smoking for good. can bernard legally collect $100 from helen
Answers: 1
Business, 23.06.2019 00:00
Todd and jim learned that in building a business plan, it was important for them to:
Answers: 1
On december 31, 2013, main inc borrowed $3,000,000 at 12% payable annually to finance the constructi...
Mathematics, 10.02.2021 01:00
Mathematics, 10.02.2021 01:00
Mathematics, 10.02.2021 01:00
Social Studies, 10.02.2021 01:00
English, 10.02.2021 01:00