ACCT 330 Study Guide - Final Guide: Retained Earnings, Busytown, George Winston
Document Summary
On december 31, 2003, alma-ata inc. borrowed 3,000,000 at 12% payable annually to finance the construction of a new building. 2004, the company made the following expenditures related to this building: march 1, ,000; june 1, ,000; july 1, ,500. Additional information is provided as follows: other debt outstanding. 10-year, 13% bond, december 31, 1997, interest paybable annually. 6-year, 10% note, dated december 31, 2001, interest payable annually: march 1, 2004, expenditure inculded land costs of ,000, interest revenue earned in 20045. Determine the amount of interest to be capitalized in 2004 in relation to the construction of the building. Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at december 31, Jane geddes engineering corporation purchased conveyor equipment with a list price of ,000. Presented below are three independent cases related to the equipment. Assume that the purchases of equipment are recorded gross. (round to nearest dollar. ) (a) (b) (c)
