need to find the amount in the balance sheet for building and land accounts. with capitalizing interest

Intermediate Accounting. Spring 2020 Page 13 of 16 Construction Interest Problem Exam type question Maple Island Company Construction Interest Problem Maple Island Company purchased land in 2017 for a new office complex at a cost of $525.000. On May 1, 2018, construction of the office complex began (the land was appraised at $575,000 on that date). Construction was completed on October 1, 2019 Construction financing was obtained at an annual interest rate of 8%. All construction borrowing was repaid on Nov. 1. 2019. Shoreline's financial year is the calendar year During all of 2018 and 20198, Shoreline had the other following loans: Loan Annual Amount Date of loan Date of Rate repeythe Bank A 7% $250.000 May 1, 2018 July 1, 2020 Bank B 5% $500,000 July 1, 2017 April 1, 2020 Expenditures for the building, and draws against the construction loan agreement were as follows: Construction payments June 1, 2018 September 1, 2018 Construction loan amounts 570,000 June 1, 2018 720,000 August 1, 2018 540.000 540,000 February 1, 2019 880,000 February 1, 2019 900.000 April 1, 2019 1,080,000 May 1, 2019 180,000 October 1, 2019 400,000 2o0 Required: Genereal Borrowny 2018 20.00.7 Balance sheet asset titles and account balances (not including accumulated depreciatio n relative the above transactions on: 2019 250,000 on December 31, 2018 500 os December 31, 2019 Intermediate Accounting. Spring 2020 Page 13 of 16 Construction Interest Problem Exam type question Maple Island Company Construction Interest Problem Maple Island Company purchased land in 2017 for a new office complex at a cost of $525.000. On May 1, 2018, construction of the office complex began (the land was appraised at $575,000 on that date). Construction was completed on October 1, 2019 Construction financing was obtained at an annual interest rate of 8%. All construction borrowing was repaid on Nov. 1. 2019. Shoreline's financial year is the calendar year During all of 2018 and 20198, Shoreline had the other following loans: Loan Annual Amount Date of loan Date of Rate repeythe Bank A 7% $250.000 May 1, 2018 July 1, 2020 Bank B 5% $500,000 July 1, 2017 April 1, 2020 Expenditures for the building, and draws against the construction loan agreement were as follows: Construction payments June 1, 2018 September 1, 2018 Construction loan amounts 570,000 June 1, 2018 720,000 August 1, 2018 540.000 540,000 February 1, 2019 880,000 February 1, 2019 900.000 April 1, 2019 1,080,000 May 1, 2019 180,000 October 1, 2019 400,000 2o0 Required: Genereal Borrowny 2018 20.00.7 Balance sheet asset titles and account balances (not including accumulated depreciatio n relative the above transactions on: 2019 250,000 on December 31, 2018 500 os December 31, 2019