Brent Hill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1, $ 1.2 million on June I, and $3 million on December 31. Calculate Brent Hill's weighted-average accumulated expenditures that would be used for capitalization of borrowing costs.
Answer to relevant QuestionsBrent Hill Company (see BEI0-21) borrowed $1 million on March I on a five-year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $2-million, five-year, 13% note payable ...6 Chavez Corporation purchased a truck by issuing an $80,000, four-year, non- interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Prepare the journal entry to record the ...Geddes Engineering Corporation purchased conveyor equipment with a list price of $50,000. Three independent cases that are related to the equipment follow. Assume that the equipment purchases are recorded gross. I. Geddes ...Lightstone Equipment Ltd. wanted to expand into New Brunswick and was impressed by the provincial government's grant program for new industry. After being sure that it would qualify for the grant program, it purchased ...On December 31, 2013, Omega Inc. borrowed $3 million at 12% payable annually to finance the construction of a new building. In 2014, the company made the following expenditures related to this building structure (unless ...
Post your question