Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nocl Maxwell & Co commenced the construction of their new clothes store on April 1, 2019. The following costs were incurred on the construction: S'000
Nocl Maxwell & Co commenced the construction of their new clothes store on April 1, 2019. The following costs were incurred on the construction: S'000 Architect fees 340 Accounting fees 230 Clearing of land 20 Direct labour costs 8,600 Frechold land 10,700 Legal fees 2,600 Direct material costs 6,700 General overhead costs 900 Site preparation 1.260 Construction of the clothes store was completed on January 1, 2020. and Mr. Maxwell started operating business on April 1. 2020. In order to aid with the construction of the clothes store, Nocl Maxwell & Co was able to get an unsecured loan of S15,000,000. The loan camcd an interest rate of 1299 per annum and is payable on April 2022. Instructions Prepare a schedule showing the amount to be included as property plant and equipment in respect of the new clothes store (10 marks) Prepare a presentation to explain the following: i) The reason for including each item as a part of the cost for property, plant and equipment in part A. ii) The impact, if any, the information in the question will have on Noel Maxwell & Co Income Statement for the year ended March 31, 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started