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please use excel for calculations if possible and show work Question 1: Johnson Company hired a contractor to design and construct a new headquarters facility
please use excel for calculations if possible and show work
Question 1: Johnson Company hired a contractor to design and construct a new headquarters facility in Long Island City. Construction was begun on 4/1/20 and was completed on 12/31/20. Johnson made the following payments on the contract during 2020: Date Payment 4/1 2,000,000 8/31 7,000,000 12/31 3,000,000 In order to help finance the construction, Johnson issued the following during 2020: a) $1,500,000 of 10-year, 6% bonds payable, issued at par on 4/1/20, with interest payable annually on 4/1. b) 1,000,000 shares of no-par common stock, issued at $10 per share on 6/1/20. In addition to the 6% bonds payable, the only debt outstanding during 2020 was a $4,000,000, 5% note payable dated 1/1/14 and due 1/1/24, with interest payable annually on 1/1. Compute the weighted average accumulated expenditures qualifying for capitalization of interest cost, the avoidable interest incurred during 2020, and the total amount of interest cost to be capitalized during 2020Step by Step Solution
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