Question: look at the dates carefully i solved it and got those number and want to make sure of them On March 1, 2021, Sinokrot Co
On March 1, 2021, Sinokrot Co contracted Nabali & Fares Construction Co. to construct a building for $2,000,000 on land costing $200,000 (purchased from the contractor and included in the first payment). Sinokrot made the following payments to the construction company during 2021. 202 Expenditures March 1, 2021 $360,000 April 1, 2021 540,000 June 1, 2021 450,000 July 31, 2021 250,000 October 31, 2021 600,000 The automated plant-building was finished and ready for use on October 31, 2017 Sinokrot had the following debt outstanding at December 31, 2011 2.1 Specific Construction Debt 1. To finance construction of the building, a $600,000, 12% construction loan was taken out on March 1, 2021. The loan was repaid on October 31, 2021. lis 18,300 Other Debts 2. On July 1, 2021, Sinokrot issued $2,000,000 bonds on a 5 year bonds at 9% 90,30 3. On January 1, 2020, Sinokrot borrowed $500,000 on a 3-year loan at 8%. 40.000 Required a) Compute the weighted average accumulated expenditures qualifying for capitalization of interest cost for 2021, using the following table. (5 points) Expenditures Capitalization Weighted - Average Date Amount Period Accumulated Expenditures March 1, 2021 $360,000 3/12 20,000 April 1, 2021 540,000 7/12 315.000 June 1, 2021 450,000 5/12 134, 530 July 31, 2021 250,000 3/12 62,500 October 31, 2021 600,000 0/12 Total Weighted Average Accumulated Expenditures 805,000 b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any. (3 points) Avoidable 72.000 * 10, ks 81,660 Achaal 148,00 Account DR CR Building Capitalized) 82,658 Interest expense as, 340 cash 178,000
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