Question: EA Co. wants to construct asmall warehouse to store some materials begun on April 1, 2020 and was completed on December 31, 2020. The following

EA Co. wants to construct asmall warehouse to store some materials begun on April 1, 2020 and was completed on December 31, 2020. The following expenditures were incurred for construction April 1 $ 15,000 May 1 $ 8.000 May 31 $ 5.000 July 1 $ 20,000 ...... August 1 $ 10.000 December 3 1 $20.000 In order to help finance the construction, EA Co. issued the following during 2020. 1. $20,000, of 10-year, 9% bonds payable, issued at par on March 31, 2020, with interest payable armually on March 31. 2. 1,000,000 shares of no-par ordinary shares, issued at $10 per share on October 1, 2020. In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $750,000, 12% note payable dated January 1, 201 1 and due January 1, 2025, with interest payable anually on January 1. Compute the amounts of each of the following (show computations): 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2020. 3. Total amount of interest cost to be capitalized during 2020
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