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During 2 0 2 4 , Shelton Inc. constructed a warehouse. The company had the following debt outstanding on December 3 1 , 2 0
During Shelton Inc. constructed a warehouse. The company had the following debt outstanding on December :
$ Million, year note for a construction loan, dated January with interest payable annually on December
$ Million, tenyear bonds issued at par on December with interest payable annually on December
$ million, year note payable, dated January with interest payable annually on December
There are three different scenarios to consider.
Scenario A: WAE for are $ Specific interest method is used
Scenario B: WAE for are $ Specific interest method is used
Scenario C: WAE for are $ Weighted average method is used
For each scenario:
a
Report the amount of interest that gets capitalized
b
Report the journal entry for all interest costs during
c
Report the effects on total assets, liabilities, equity, revenues, expenses, and net income. Give both direction and amount.
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