Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 1, 2020, Bisan Systems Co. contracted Nabali & Faros Construction Co. to construct a building for $1,800,000 on land costing $200,000 (purchased from

image text in transcribed
On March 1, 2020, Bisan Systems Co. contracted Nabali & Faros Construction Co. to construct a building for $1,800,000 on land costing $200,000 (purchased from the contractor and included in the first payment). The building was completed and ready for use on November 30, 2020. Bisan made the following payments to the construction company during 2020 Date March 1, 2020 April 1, 2020 June 30, 2020 July 31, 2020 November 30, 2020 Expenditure $ 700.000 240.000 150,000 150,000 760,000 Bisan also had the following debt outstanding at December 31, 2020. Specific Construction Debt To finance construction of the building, a $650,000, 12% construction loan was taken out on March 1, 2020. The loan was rupaid on December 31 2020 Other Debts 1. On July 1, 2019. Bisan borrowed $100,000 on a 2-year loan at 10% 2. On January 1, 2020. Bisan borrowed $500,000 on a 3-year loan at 8% 3. On September 1, 2020, Bisan issued $2,000,000 on a 5 year bonds at 12% The weighted-average accumulated expenditures qunitying for capitalization of interest out for 2020 is: O a $797,500 I need help in my exams O $822,500 +970 592202125 ob $1.063,333 Od 5900,833

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions