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All com ausociated with the constuction are being debatled to an account called -Construction-in. Progress. The combtrucuon will take approximately 18 months. Feighted-averije experi. The
All com ausociated with the constuction are being debatled to an account called -Construction-in. Progress." The combtrucuon will take approximately 18 months. Feighted-averije experi. The compony has ond specific, as well as two nonespecific loan borrowings. Detalls are as follown:Pe2t have anfredy been defermined to be 58,090,000. Spctific tioan Horrowingi 55,000,000 toan at 95 t taken 04t1/1/2023 and duc in 2026 . Nose il1 - 53,000,000 at 10%. This loan was ounstandiog for all of 2023 and is due in 2024 Non-specific Boatowines Note 12 : $1,000,000 at 12%. This loan was outstanding for all of 2023 and is due in 2025 . Part A: What portios of the intetest os all of its loans should be capitalized in 2023 I Important: What portios of the interest os alf of its loans should be capatalizod in 2023 -important Round interest rates to two decimal places wher expressed as a pereentage (ex, 114321 11.43 ) (7 points) Answer. 5 Calculations Part B: If the company bas already acerued and paid the 2023 interest costs on these three loans by debiting "Interest Expense" and crediting "Cash", what adjusting jotarnal eniry should be made on 12/31/23 to capitalize interest for 2023 ? (3 points)
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