會計 HW question,pls HELP!

2010-11-21 10:31 pm

During 2010, Barden Building Company constructed various assets at a total cost of $8,400,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2010 were $5,600,000. The company had the following debt outstanding at
December 31, 2010: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2010, with interest payable annually on January 1 $3,600,000 2. 12%, ten-year bonds issued at par on December 31, 2004, with interest payable annually on
December 31 4,000,000 3. 9%, 3-year note payable, dated January 1, 2009, with interest payable annually on January1 2,000,000 1.Compute the amount of interest that may be capitalized in 2010 (show computations).

回答 (1)

Acct

2010-11-23 12:42 am

✔ 最佳答案

There is no need to capitalize Item 2 and 3 as these funds acquired before 2010 and not for the purpose of construction varoius assets.For item 1, the fund acquire for the purpose of construction various assets, i.e. capitalized interest = 3,600,000 x 10% = 360,000.

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