Question: please help asap. thank you . Computing and Recording interest Capitalization The following information is from Bowin inc. for a long-term construction project that is

. Computing and Recording interest Capitalization The following information is from Bowin inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. The capital expenditure on January 1, 2020.is for the purchase of tand for the building site. No new construction dans were opened for the project in 2020. All debt was outstanding for the full year Capital Expenditures for 2020 Date Amount 2020 S2000 Mar2020 990.000 Jun 2020 1.950.000 Nov 30, 2020 990,000 Outstanding Debt in 2020 DEBE Debt Amount interest Rate Note payabile $1,100,000 BH Notepayable 80,000 34 Bond payable 2,200.000 104 Note payable 550.000 90 Answer the following questions: a Compute interest to be capitalized and the interest to be expensed in 2020. b. Prepare the entry to record the construction expenditures and interest for 2020
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
