On November 1 , 1 9 9 9 Senn Company contracted Super Contractors to have a
Question:
On November Senn Company contracted Super Contractors to have a building constructed for Sh Senn made payments for the construction as follows:
January sh March Sh May Sh December Sh
The construction was completed and the building was ready for occupation on December Senn had the following outstanding debt as december
i three year note to finance construction of the building, dated December with interest payable annually on December Sh
ii six year note payable, dated December with interest payable annually on December
Sh
iii ten year bonds issued December with interest payable annually on December
Sh
Required:
i Determine the amount of interest to be capitalized in in relation to the construction of the building. marks
ii Prepare journal entries for Senn Company during
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill