Assume that the Yawyag Corporation in E11- 8 is an IFRS reporter and answer the following:
Required
a. Compute the weighted- average accumulated expenditures for the current year.
b. Compute the amount of interest related to the construction project and actual interest cost for the current year.
c. Indicate the amount of total interest to be capitalized and the amount of interest expense for the year.
d. Prepare the journal entry to record the December 31 interest payment. Assume that the interest is paid in cash and that any interest capitalized is recorded in the Construction in Progress account.
In Exercise
Date Amount
January 2 ………………………. $ 2,400,000
August ………………………… 1 1,800,000
October ………………………… 1 3,600,000
December………………………. 1 1,200,000