Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My numbers are all wrong, can someone help? Interest During Construction Matrix Inc. borrowed $1,100,000 at 8% to finance the construction of a new building

image text in transcribedMy numbers are all wrong, can someone help?

Interest During Construction Matrix Inc. borrowed $1,100,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2019, and was completed on October 31, 2019. Expenditures related to this building were: January 1 $258,000 (includes cost of purchasing land of $150,000) May 1 310,000 July 1 450,000 October 31 280,000 In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year. Required: 1. Compute the amount of interest capitalized related to the construction of the building. $ 41,600 2. If the expenditures are assumed to have been incurred evenly throughout the year: Compute weighted average accumulated expenditures $ 649,000 Compute the amount of interest capitalized on the building 51,920 $ 51,9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Karen Bird, Gene Imhoff

5th Edition

0984200568, 978-0984200566

More Books

Students also viewed these Accounting questions

Question

How to Construct a Relative Frequency Histogram

Answered: 1 week ago

Question

Is this public actively seeking information on this issue?

Answered: 1 week ago

Question

How much loyalty does this public have for your organization?

Answered: 1 week ago

Question

How influential does the organization see this public as being?

Answered: 1 week ago