Question
Use the following information to answer questions 5 through 8 On March 1, 2019, LAS Company purchased land for an office site. LAS Companybegan construction
Use the following information to answer questions 5 through 8
On March 1, 2019, LAS Company purchased land for an office site. LAS Companybegan construction on the office building on March 1. The following expenditures were incurred for construction:
DateExpenditures
March 1, 2019600,000
June 1, 2019504,000
Aug 1, 2019900,000
Oct 1, 20191,440,000
The payment of March includes the land cost of 200,000.The office was completed on December 31.
LAS borrowed 729,000 on March 1, 2019, on a 9%, 3-year note payable for construction purposes.
Other general loans include 3000,000, 12%, 6-year note payable dated January 1, 2019, and
1,500,000, 9%, 5-year note payable dated January 1, 2019.
LAS earned interest revenues of20,000 for specific borrowing.
Compute the interest expense for 2019
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started