Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Task1. On January 1, 2013, Mason Manufacturing Company began construction of building to be employed as its office headquarters. The building was completed on September 30, 2014.

Expenditures on project were as follows:

January 1, 2013                    $ 1,200,000    
March 1, 2013                           690,000    
June 30, 2013                           450,000    
October 1, 2013                        660,000    
January 31, 2014                       945,000    
April 30, 2014                         1,260,000    
August 31, 2014                      2,250,000    

On January 1, 2013, the company acquired a $3 million construction loan with the 12% interest rate. The loan was outstanding all of 2013 and 2014. The company’s other interest-bearing debt included two long-term notes of $5,500,000 and $7,500,000 with interest rates of 9%and 7%, respectively. Both notes were outstanding throughout all of 2013 and 2014. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:

problem1. Compute the amount of interest that Mason must capitalize in 2013 and 2014 using the weighted-average method.

problem2. What is the total cost of building?

problem3. Compute the amount of interest expense which will appear in the 2013 and 2014 income statements.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94201

Have any Question? 


Related Questions in Financial Accounting

Accounting and financial management assignmentthis

Accounting and Financial Management Assignment This Assignment is designed to give you an opportunity: demonstrate applied knowledge of the accounting regulatory environment. apply financial statement analysis. apply and ...

What qualities make a future issue a ldquotriggerrdquo

What qualities make a future issue a “trigger”? Consider you are on the strategic planning team for a soft drink company. Here is your company’s future trigger: “merger of our two major competitors next year.” Formulate ...

1 write the journal entries for the following transactionsa

1) Write the journal entries for the following transactions: a) The company acquires $200 of inventory on accounts (does not pay cash) b) The company sells $125 of the $200 inventory purchased in transaction (a) above. T ...

Community budget analysis - government homework helpyou are

Community Budget Analysis - Government Homework Help You are the City Administrator for your community. You received a letter from a community member demanding to know why their tax dollars are being used by the city for ...

Paper preparation topic abortion- please read instructions

Paper Preparation Topic: Abortion- Please read instructions in red. To prepare for your Paper (due in Week Five), complete the following assignment and submit it to your instructor for feedback. Your paper should include ...

Cnsider the following optimization problemmax x1

Consider the following optimization problem: Max: X1 + X2 Subject to: -4 X1 + 4 X2 -8 X1 + 10 X2 >= 15 X1, X2 > 0 Part a: What is the optimal solution to the problem? Part b: Now suppose that X1 and X2 must be integers. ...

Assignmenta manufacturing company is thinking of launching

Assignment A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and m ...

What are some different ways you could communicate a

What are some different ways you could communicate a concept for a new user interface for an automotive audio system? What are the strengths and weaknesses of each approach?

Assessment case study of financial analysis and operating

Assessment: Case Study of Financial Analysis and Operating Ratios In this assessment you will use the income statement and balance sheet information identified below and evaluate the firm's financial condition based on t ...

Financial of accounting assignment1a explain the term bank

FINANCIAL OF ACCOUNTING ASSIGNMENT 1. a) Explain the term "bank reconciliation" and state the reasons for its preparation (6mks) b) Jalash, a sole trader received his bank statement for the month of June 2016. At that da ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro