1.
On December 31, 2019, Blue Inc. borrowed $4,260,000 at 12% payable annually to nance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $511,200: June 1, $852,000; July 1, $2,130,000; December 1, $2,130,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year. 13% bond, December 31, 2013, interest payable annually $5,680,000 6-year, 10% note, dated December 31, 2017. interest payable annually $2,272,000 2. March 1. 2020, expenditure included land costs of $213,000 3. Interest revenue earned in 2020 $69,580 (a) V Your answer is correct. Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest $ 259,860 (b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit AnswerMachinery purchased for $69,000 by Vaughn Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,600 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,175 at the end of that time. Assume straight-line depreciation. (a) Your answer is correct. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No Entry No Entry 0(b) Prepare the entry to record depreciation for 2021. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Machinery related account.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit AnswerPresented below is information related to equipment owned by Concord Company at December 31, 2020. Cost $9,450,000 Accumulated depreciation to date 1,050,000 Expected future net cash flows 7,350,000 Fair value 5,040,000 Concord intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. (a) Your answer is partially correct. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Swifty Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,442 per acre. At the time of purchase, the land without the timber was valued at $412 per acre. In 2010, Swifty built re lanes and roads, with a life of 30 years, at a cost of $86,520. Every year, Swifty sprays to prevent disease at a cost of $3,090 per year and spends $7,210 to maintain the re lanes and roads. Du ring 2011, Swifty selectively logged and sold 721,000 board feet of timber, of the estimated 3,605,000 board feet. In 2012, Swifty planted new seedlings to replace the trees cut at a cost of $103,000. (a) V Your answer is correct. Determine the depreciation expense and the cost of timber sold related to depletion for 201 1. {and the nal am too decimal places,\" 5,125.) Depreciation expense $ 2,834 Cost of timber sold $ 1,854,000 (b) Swifty has not logged since 2011. If Swifty logged and sold 927,000 board feet of timber in 2022, when the timber cruise (appraiser) estimated 5,150,000 board feet, determine the cost of timber sold related to depletion for 2022. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to O decimal places, e.g. 5,125.) Cost of timber sold eTextbook and Media Save for Later Attempts: 0 of 5 used Submit
