Prepare a Schedule

Create a schedule that outlines the total spend for San Antonio on the construction expenses.

Develop a schedule that shows initial values of the various assets that San Antonio acquired or constructed during 2013. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.

Develop a schedule that shows the total interest expense that San Antonio will need to show for 2013 as it relates to construction of the new facility.

Early in its fiscal year ending December 31, 2013, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on April 25th with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $800,000. San Antonio paid $200,000 and signed a noninterest-bearing note requiring the company to pay the remaining $600,000 on March 28, 2015. An interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $20,000 were paid at closing. Below is the trial balance for San Antonio Outfitters as of March 31.

SAN ANTONIO OUTFITTERS

Trial Balance

March 31, 20XX

Debit Credit

Cash .......................................................................................... $3,394,380

Accounts receivable ............................................................... 2,129,500

Prepaid insurance ................................................................... 42,300

Office equipment .................................................................... 119,300

Accumulated Depreciation, Office Equipment .................. $11,750

Inventory ................................................................................. 2,104,000

Building ................................................................................... 100,000

Land.......................................................................................... 720,000

Accounts payable ................................................................... $ 104,410

Notes payable.......................................................................... 600,000

San Antonio, Capital ............................................................. 2,541,700

San Antonio, Withdrawals .................................................... 10,450

Revenue ................................................................................... 6,144,100

Wages expense ........................................................................ 654,500

Depreciation Expense, Office Equipment ........................... 4,250

Equipment rental expense ..................................................... 71,410

Office Supplies 7,500

Advertising expense............................................................... 32,400

Repairs expense ...................................................................... 11,970

Totals ........................................................................................ $9,401,860 $9,401,860

During April, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows:

May 30 $1,200,000

July 30 1.500.000

Sept 1 900,000

Oct 1 1,800.000