(C) The following information were gathered relating to the financingand construction of the entity's customized equipment.Cumulative Amount SpentDateP 3,000,0007,000,00012,000,000Jan. 1, 2021Mar. 30, 2021Sept. 30, 2021Borrowing DetailsAcquisition DatePrincipal Amount P10,000,000 P15,000,000AAA BankВBB BankJan. 1, 2020Jan. 1, 2021Interest Rate5%8%Due DateJan. 1, 2025Jan. 1, 20256. How much is the average carrying value of the equipmentduring the year?7. What is the average interest rate from the generalborrowings? Answer in the format xx.xx (e.g. 5.25 for5.25%).How much is the capitalizable borrowing cost for the year?9. How much is the interest expense to be reported in theincome statement for the year?8.

Avg carryigng value of equipment is calculated by multiplying the no. months that expenses is put in…

(C) The following information were gathered relating to the financing and construction of the entity's customized equipment. Cumulative Amount Spent P 3,000,000 7,000,000 12,000,000 Date Jan. 1, 2021 Mar. 30, 2021 Sept. 30, 2021 АAА Bank ВBB Bank Borrowing Details Acquisition Date Principal Amount Jan. 1, 2020 Jan. 1, 2021 P10,000,000 P15,000,000 Interest Rate 5% 8% Due Date Jan. 1, 2025 Jan. 1, 2025 6. How much is the average carrying value of the equipment during the year? 7. What is the average interest rate from the general borrowings? Answer in the format xx.xx (e.g. 5.25 for 5.25%). 8. How much is the capitalizable borrowing cost for the year? 9. How much is the interest expense to be reported in the income statement for the year?

(C) The following information were gathered relating to the financing and construction of the entity's customized equipment. Cumulative Amount Spent P 3,000,000 7,000,000 12,000,000 Date Jan. 1, 2021 Mar. 30, 2021 Sept. 30, 2021 АAА Bank ВBB Bank Borrowing Details Acquisition Date Principal Amount Jan. 1, 2020 Jan. 1, 2021 P10,000,000 P15,000,000 Interest Rate 5% 8% Due Date Jan. 1, 2025 Jan. 1, 2025 6. How much is the average carrying value of the equipment during the year? 7. What is the average interest rate from the general borrowings? Answer in the format xx.xx (e.g. 5.25 for 5.25%). 8. How much is the capitalizable borrowing cost for the year? 9. How much is the interest expense to be reported in the income statement for the year?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 2BIC

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3. Following information is available in respect of A LtdParticulars As on 31.3.2019(Rupees. In Lacs)As on 31.3.2020(Rupees. In Lacs)Investment in FinancialAssets- 100Equity Share Capital 150 160Long term Loans taken 100 200Dividend paid - 26Dividend received - 10Interest received - 15a. Prepare the cash flow from financing activities from the above information and givereasons for each element whether these elements belongs to financing activities or not. b. Calculate the relationship between the debt and equity for the year 2019 and 2020, andcomment
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022: January 1, 2021 4,000,000April 1, 2021 5,000,000December 1, 2021 3,000,000March 1, 2022 6,000,000 What amount of interest is capitalized as cost of the new building in 2021? What is the cost of the building to date December 31, 2021? What is the cost of the building on December 31, 2022? What amount of interest expense should be reported for 2022?
Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022: January 1, 2021 4,000,000April 1, 2021 5,000,000December 1, 2021 3,000,000March 1, 2022 6,000,000 What amount of interest expense should be reported for 2022?
Jen Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan outstanding during 2021 and 2022. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2022. The following expenditures were made during 2021 and 2022:January 1, 2021 4,000,000 April 1, 2021 5,000,000 December 1, 2021 3,000,000 March 1, 2022 6,000,000 1) What is the cost of the building on December 31, 2022? A. 18,000,000 B. 20,988,000 C. 19,980,000 D. 20,100,000 2) What amount of interest expense should be reported for 2022? A. 3,000,000 B. 3,300,000 C. 1,212,000 D. 912,000
a. Identify the following transactions as either Capital Expenditure or RevenueExpenditure.i). Pay salary and wages for November 2020 amounting to RM6,200.ii). Purchase vehicle for business use amounting to RM145,000.iii). Depreciation expense for financial year ended 2020 amounting to RM21,000.iv). Purchase stationery for office use amounting to RM450.v). Acquire a building amounting to RM520,000.vi). Repair office door amounting to RM800.
An entity provided the following information during the current year:January 1 December 31Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%REQUIRED: . Compute the defined benefit cost
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Recognition is the process of including within the financial statements items which meet the definition of an element according to the IASB’s Conceptual Framework for Financial Reporting. Which of the following items should be recognised as an asset in the statement of financial position of a company? Select one: a. A highly lucrative contract signed during the year which is due to commence shortly after the year end b. A government grant relating to the purchase of an item of plant several years ago which has a remaining life of four years c. A skilled and efficient workforce which has been very expensive to train. Some of these staff are still in the employment of the company d. A receivable from a customer which has been sold (factored) to a finance company. The finance company has full recourse to the company for any losses
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