Question: Intermediate accounting (need a solution) Question three: (20 marks) On June, 2019, Sun Construction began construction of a new building for its use. The building
Question three: (20 marks) On June, 2019, Sun Construction began construction of a new building for its use. The building was finished and ready for use on May31, 2020. Expenditures for the construction were as follows: Cost of land paid in June 1, 2019 $1,800,000 July 1/2019 600,000 October 31, 2019 750,000 December 31, 2019 800,000 January 1, 2020 395,000 March 31,2020 375,000 April 1.2020 562.500 May 31,2020 37,806 Sun Construction borrowed $800,000 on a construction loan at 4.5% interest on June 1,2019. This loan was outstanding during the construction period. The company also had the following outstanding loan during the period: $6,000,000, 7.1% bonds $5,000,000, 4.7% mortgage. Required 1-Compute the amount of capitalize interest, if any, in December31, 2019, 2020. 2-Journalize the entries in December31, 2019, 31/05/2020,31/12/2020 (assuming the company use straight line method for depreciation with 50 years' useful life and 100,000 salvage value)
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