Solve all question s . only if u kniw welll!!Question1:

On December 1, john contracted for the making of a building for $10,99,990.

The building was completed at the end of March next year, and during the period the following were made to the contractor.

Payment date Amount ($'990)

December299

January

699

Febuary199

March199

John borrowings at its year end were as follows:

a. 10%, 4-year note with simple interest payable annually, which relates specifically to the project; debt outstanding amounted to $6,99,990. Interest of$ 5,990 was incurred on these borrowings during the year, and interest income of ` 20,990 was earned on these funds while they were held in anticipation of payments.

b. 12.5% 10-year note with simple interest payable annually; debt outstanding amounted to $.1,990,990 and remained unchanged during the year; and

c. 10% 10-year note with simple interest payable annually; debt outstanding at amounted to $.1,599,990 and remained unchanged during the year.

What amount of the borrowing costs can be capitalized at year end

Question2:

(i) XYZ. won an award for $1 million. From the proceeding, it was evident that the Company is most likely to win the award. The directo$ approved the financial statements for year ending. The management did not consider the effect of the above transaction, as it was favourable to the company and the award came after the end of the financial year.

(ii) PQR Ltd. have a trading business of Mobile telephones. The Company has purchased 1990 mobiles phones at $.5,990 each. The manufacture$ of phone had announced the release of the new ve$ion but not announced the price. Zoom Ltd, has valued inventory at cost of $ 5,990 each.

Due to arrival of new advance ve$ion of Mobile Phonethe selling prices of the mobile stocks remaining with company was dropped at $4,990 each.

The financial statements of the company valued mobile phones @ $5,990 each and not at the value @ $.4,990 less expenses on sales, as the price reduction in selling price was effected after

(iii) There was an old due from a debtor amounting to $15 against whom insolvency proceedings was instituted prior to the financial year endingThe debtor was declared in solvent

(iv) Assume that subsequence to the year end and before the financial statements are approved, Company's management announces that it will restructure the operations of the company. Management plans to make significant redundancies and to close a few divisions of company's business; however, there is not formal plan yet. Should management recognize a provision in the

books if the company decides subsequent to end of the accounting year to restructure its operations?

John borrowings at its year end were as follows: a 10%, 4-year note with simple interest payable annually, which relates specifically to the project; debt outstanding amounted to $6,99,990. Interest of$ 5,990 was incurred on these borrowings during the year, and interest income of * 20,990 was earned on these funds while they were held in anticipation of payments. b. 12.5 10-year note with simple interest payable annually; debt outstanding amounted to $.1,990,990 and remained unchanged during the year; and C 10% 10-year note with simple interest payable annually; debt outstanding at amounted to | $.1,599,990 and remained unchanged during the year. What amount of the borrowing costs can be capitalized at year end Question2: XYZ won an award for $1 million. From the proceeding, it was evident that the Company is most likely to win the award. The directo5 approved the financial statements for year ending. The management did not consider the effect of the above transaction, as it was favourable to the company and the award came after the end of the financial year. POR Ltd. have a trading business of Mobile telephones. The Company has purchased 1990 mobiles phones at 5.5,990 each. The manufactureS of phone had announced the release of the new yesign but not announced the price. Zoom Lid, has valued inventory at cost of $ 5,990 each. Due to arrival of new advance veSion of Mobile Phone the selling prices of the mobile stocks remaining with company was dropped at 54,990 each. The financial statements of the company valued mobile phones @ $5,990 each and not at the value @ 5.4,990 less expenses on sales, as the price reduction in selling price was effected after There was an old due from a debtor amounting to 515 against whom insolvency proceedings was instituted prior to the financial year ending The debtor was declared in solvent Assume that subsequence to the year end and before the financial statements are approved, Company's management announces that it will restructure the operations of the company. Management plans to make significant redundancies and to close a few divisions of company's business; however, there is not formal plan yet. Should management recognize a provision in the books if the company decides subsequent to end of the accounting year to restructure its operations?Question1: On December 1, john contracted for the making of a building for $10,99,990. The building was completed at the end of March next year, and during the period the following were made to the contractor. Payment date Amount ($'990) December 299 January 699 Febuary 199 March 199 John borrowings at its year end were as follows: a. 10%, 4-year note with simple interest payable annually, which relates specifically to the project; debt outstanding amounted to $6,99,990. Interest of$ 5,990 was incurred on these borrowings during the year, and interest income of ' 20,990 was earned on these funds while they were held in anticipation of payments. b. 12.5% 10-year note with simple interest payable annually; debt outstanding amounted to $.1,990,990 and remained unchanged during the year; and C 10% 10-year note with simple interest payable annually; debt outstanding at amounted to | $.1,599,990 and remained unchanged during the year. What amount of the borrowing costs can be capitalized at year end