On 1 January 2017, Mantra Co borrowed $12 million for the construction of a building that is
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Question:
On 1 January 2017, Mantra Co borrowed $12 million for the construction of a building that is estimated to cost $30 million and is expected to be completed in 2019. Only $5 million was utilized during the year and the balance of $7 million was invested temporarily in a fixed deposit which yielded an interest of 5% per annum. Total interest on the borrowing of $12 million for the year 2017 was $0.84 million and has neither been paid nor recorded
Required:
(a) Prepare the statement of comprehensive income for the year ended 31 December 2017.
(b) Prepare the statement of financial position for the year ended 31 December 2017.
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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