Computing and Recording interest Capitalization The following informadon is from Bowin loc for a long term construction project that is expected to be completed in January 2031. The construction project is for a building intended for the company's own use. The capital expenditure on juary 1, 2020, is for the purchase of land for the building ste. No new construction loans were opened for the project in 2020. Aldebt was outstanding for the full year Capital Expenditures for 2020 Date Amount 13090 60.000 M31,20300.000 June 10, 2020 600.000 Now 2030 10000 Outstanding Debt in 2020 Debt Debt Amount interest Rate NO 12600,000 0.000 Bond pale 000000 106 Neyle 0.000 Answer the following questions Compute interest to be capitalized and the rest to be expensed in 2020 b. Prepare the entry to record the construction expenditures and interest for 2020 Prepare the entry for deprecation in 2021 assuming that the project is completed on January 1 2021 Assume that the ordinghause life of years and that the company este straight-line depreciation method Note Answer the followme questions corong all secumalis in cautions pound final camera to the cares abouter Amount of becopilas Amount of 5 Note: Answer the following questions, carrying all decimals in calculations, round final answers to the nearest dollar. a. Amount of interest to be capitalized $ Amount of interest to expense $ Dr. Cr. Account Name Land Construction in Process Cash and Payables C Account Name Dr. Cr. Check Computing and Recording interest Capitalization The following informadon is from Bowin loc for a long term construction project that is expected to be completed in January 2031. The construction project is for a building intended for the company's own use. The capital expenditure on juary 1, 2020, is for the purchase of land for the building ste. No new construction loans were opened for the project in 2020. Aldebt was outstanding for the full year Capital Expenditures for 2020 Date Amount 13090 60.000 M31,20300.000 June 10, 2020 600.000 Now 2030 10000 Outstanding Debt in 2020 Debt Debt Amount interest Rate NO 12600,000 0.000 Bond pale 000000 106 Neyle 0.000 Answer the following questions Compute interest to be capitalized and the rest to be expensed in 2020 b. Prepare the entry to record the construction expenditures and interest for 2020 Prepare the entry for deprecation in 2021 assuming that the project is completed on January 1 2021 Assume that the ordinghause life of years and that the company este straight-line depreciation method Note Answer the followme questions corong all secumalis in cautions pound final camera to the cares abouter Amount of becopilas Amount of 5 Note: Answer the following questions, carrying all decimals in calculations, round final answers to the nearest dollar. a. Amount of interest to be capitalized $ Amount of interest to expense $ Dr. Cr. Account Name Land Construction in Process Cash and Payables C Account Name Dr. Cr. Check
