Question: I've trying to resolve the following with the examples given, and I just can't figure it out. Please help resolve this: On January 1, 2016

I've trying to resolve the following with the examples given, and I just can't figure it out. Please help resolve this:

On January 1, 2016 the Manson Manufacturing Company began construction of a building to be used as its office. the building was completed on Sep 30, 2017. the expenditures on the project were as follows: Jan 1, 2016 1,820,000, March, 2016 1,440,000, June 30, 2016 1,640,000, Oct 1, 2016 1,440,000, Jan 31, 2017 396,000 April 30, 2017 729,000 and Aug 31, 2017 1,026,000. On January 1, 2016 the company obtained a $4,400,000 construction loan with a 14% interest rate. the loan was outstanding all of 2016 and 2017. The company's other interest-bearing debt included two long-term notes of $2 million and 8million with interest rates of 10% and 12% respectively. Both notes were outstanding during all of 2016 and 2017. Interest is paid annually on all debt. the company's fiscal year-end is Dec 31.

Calculate the amount of interest that Mason should capitalize in 2016 and 2017 using the specific interest method.

What is the total cost of the building?

Calculate the amount of interest expense that will appear in the 2016 and 2017 income statements.

thank you,

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