2 Not complete Marked out of 1700 Pation Computing and Recording Interest Capitalization The following information is from Bowin in for a long-term construction project that is expected to be completed January 2021. The construction project is for a building intended for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year Capital Expenditures for 2020 Date Amount Jan 1.200 5.100.000 Mar 312020540.000 Mne 20 2030 1.000.000 Now 30 2030 540.000 Outstanding Debt in 2020 Debt Debt Amount interest Rate Note payable 5600.000 Note payable 180.000 Blond payable 1.200.000 104 Note yale 100.000 Answer the following questions: Compute interest to be capitalized and the interest to be expensed in 2020 b. Prepare the entry to record the construction expenditures and interest for 2020 c. Prepare the entry for depreciation in 2021 assuming that the project is completed on January 1, 2021 Assume that the building is a useful life of 30 years, and that the company uses the Note Ansaver the beskowang guestions, carrying all decimals or cankulations round fra siswers to the newest doar .. Amount of interest to be capitalized Armount of interest to spense ER Type here to search RI 3 3 DELL The following information is from Bowin Inc for a long term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. Al! debt was outstanding for the full year. Capital Expenditures for 2020 Date Amount Jan. 1. 2020 $18.000 Mar 31, 2020 540.000 June 30, 2020 1.000.000 Nov. 30 2020 540.000 Outstanding Debt in 2020 Debt Debt Amount Interest Rate Note payable $600.000 89 Note payable 480.000 89 Bond payable 1.200.000 1096 Note payable 300.000 99 Answer the following questions: a compute interest to be capitalized and the interest to be expensed in 2020 b. Prepare the entry to record the construction expenditures and interest for 2020. c. Prepare the entry for depreciation in 2021 assuming that the project is completed on January 1, 2021. Assume that the building has a useful life of 30 years, and that the company uses the straight-line depreciation method. Note: Answer the following questions, carrying all decimals in calculations, round final answers to the nearest dollar Amount of interest to be capitalized 5 Amount of interest to expense S b. Account Name Land Construction in Process Dr. Cr. Cash and Payables Account Name Dr. Cr. ht Answer the following questions: a. Compute interest to be capitalized and the interest to be expensed in 2020. b. Prepare the entry to record the construction expenditures and interest for 2020, c. Prepare the entry for depreciation in 2021 assuming that the project is completed on January 1, 2021. Assume that the building has a useful life of 30 years, and that the company uses the straight-line depreciation method. Note: Answer the following questions, carrying all decimals in calculations, round final answers to the nearest dollar, a. Amount of interest to be capitalized s Amount of interest to expense $ Cr. Dr. . b. Account Name Land Construction in Process Cash and Payables c. Account Name Dr. Cr. a mo Check Previous Save Answers Next