Question: What do I enter for the actual interest part During January, Alliah Company incurred transactions and provided the information Instructions: Prepare a schedule that discloses

During January, Alliah Company incurred transactions and provided the information Instructions: Prepare

What do I enter for the actual interest part
a schedule that discloses the individual costs making up the balance in

During January, Alliah Company incurred transactions and provided the information Instructions: Prepare a schedule that discloses the individual costs making up the balance in the land account for land site number 101 as of that follows: Purchase of a tract of land (site number 101) with a building on January 1, 2020 Payment of real estate broker's commission Legal fees Title guarantee insurance Land value indicated on the closing statement Building value indicated on the closing statement Cost to raze the building shortly after acquisition Entered into a fixed-price contract with Slatkin Builders, Inc. on March 1, 2020, for the construction of an office building on land site number 101. The building was completed and occupied on Additional construction costs were incurred as follows: Plans, specifications, and blueprints Architects' fees for design and supervision Estimated useful life of the building from date of completion Depreciation method used for building (declining balance) Borrowing to finance construction costs on March 1, 2020 Payment terms on loan: Number of installment payments 100,000 24,000 September 30, 2020. Land Value Real estate broker's commission Legal fees Title insurance Removal of old building Cost of land ALUAH COMPANY Cost of Land (Site #101) As of September 30, 2021 728,000 40 years Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2021. Show supporting computations in good form. Calculation of capitalized interest: Interest to be capitalized: Weighted Average Accumulated Expenditure Amount of each annual installment, plus interest, starting $ March 1, 2021 Interest rate Weighted-average amounts of accumulated building construction expenditures: For the period March 1 to December 31, 2020 For the period January 1 to September 30, 2021 2020 2021 Loan Balance 2020 $ 2021 Total interest for 2020 and 2021 ALUAH COMPANY Cost of Building As of September 30, 2021 Interest Rate 10% Interest Rate 10% 10% 10% 24,000 240,000 Interest to be Capitalized (Avoidable Interest) 240,000 Fraction 0.833333333 Actual interest: 10% Fixed construction contract price Plans specifications and blueprints Architects' fees Interest capitalized during 2020 Interest capitalized during 2021 Cost of building Interest Paid x x x

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