Question
Sheridan Landscaping began construction of a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $138,000in cash.
Sheridan Landscaping began construction of a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $138,000in cash. In addition, it paid $2,880in surveying costs and $4,560for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960being received from the sale of materials.
Architectural plans were also formalized on December 1, 2020, when the architect was paid $32,400. The necessary building permits costing $3,360were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.
Date of Payment |
| Amount of Payment |
March 1 |
| $253,200 |
May 1 |
| 339,600 |
July 1 |
| 67,200 |
The building was completed on July 1, 2021. To finance construction of this plant, Sheridan borrowed $610,800from the bank on December 1, 2020. Sheridan had no other borrowings. The $610,800was a10-year loan bearing interest at8%. Compute the balance in each of the following accounts at December 31, 2020, and December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275.)
Using Excel calculate the following (show your work and use formulas where appropriate):
- Balance in the Interest Expense account for December 31, 2020 and December 31, 2021
- Balance in the Building account for December 31, 2020 and December 31, 2021
- The amount of interest capitalized in 2018
- The weighted average of accumulated expenditures for 2021
- The amount of interest capitalized in 2020
- The weighted average of accumulated expenditures for 2020
- Balance in the Land account for December 31, 2020 and December 31, 2021
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