Question
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,400,000 and an effective interest rate of 9%. Construction expenditures incurred during 2021 were as follows:
| January 1 | $ | 640,000 | |
| March 1 | 684,000 | ||
| July 31 | 564,000 | ||
| September 30 | 740,000 | ||
| December 31 | 440,000 | ||
Required: Calculate the amount of interest capitalized for 2021.
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Using Microsoft Excel And Access 20 For Accounting
Authors: Glenn Owen
5th Edition
133751229X, 9781337512299
