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i need help Problem V: (10 points) Avent Inc. began constructing a warehouse for its use on January 1, 2023. All costs associated with the
i need help
Problem V: (10 points) Avent Inc. began constructing a warehouse for its use on January 1, 2023. All costs associated with the construction are being debited to an account called "Construction-inProgress." The construction will take approximately 18 months. Weighted-average expenditures for 2023 have already been determined to be $8,000,000. The company has one specific, as well as two non-specific loan borrowings. Details are as follows: Specific Loan Borrowing: $5,000,000 loan at 9% taken out 1/1/2023 and due in 2026. Non-specific Borrowings: Note \#1: $3,000,000 at 10%. This loan was outstanding for all of 2023 and is due in 2024. - Note \#2: $1,000,000 at 12%. This loan was outstanding for all of 2023 and is due in 2025. Part A: What portion of the interest on all of its loans should be capitalized in 2023? Important: Round interest rates to two decimal places when expressed as a percentage (ex. .114321 = 11.43%)(7 points) Answer: $ Part B: If the company has already accrued and paid the 2023 interest costs on these three loans by debiting "Interest Expense" and crediting "Cash", what adjusting journal entry should be made on 12/31/23 to capitalize interest for 2023? ( 3 points) Step by Step Solution
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