Please help me to solve this problem 4. The Lambert Company begins a two-year construction project on a new building onJanuary 1, 2018. The following information is available:Capitalization period: January 1, 2018 - June 30, 2019Expenditures related to the construction:2018January 1April 1October 1December 12019January 1April 1$$300,000600,000700,000400,000500,000100.000 2019January 1April 1$500,000 *100,000*Only includes construction costs incurred in January 2019.Amounts borrowed and outstanding:$ 1,000,000 at 9% borrowed specifically for the project$ 8,000,000 at 10%$ 6,000,000 at 11%Prepare the journal entries to record the interest capitalization for 2018 and 2019,respectively.For interest calculations, use 2 decimal points)

Capitalization of Interest Expenses For the Calculation of Interest Expenses which are incurred for…

Answered: $ 8,000,000 at 10% $ 6,000,000 at 11%…

$ 8,000,000 at 10% $ 6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. or interest calculations, use 2 decimal points)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Question

Please help me to solve this problem

4. The Lambert Company begins a two-year construction project on a new building on
January 1, 2018. The following information is available:
Capitalization period: January 1, 2018 - June 30, 2019
Expenditures related to the construction:
2018
January 1
April 1
October 1
December 1
2019
January 1
April 1
$
$
300,000
600,000
700,000
400,000
500,000
100.000

2019
January 1
April 1
$
500,000 *
100,000
*Only includes construction costs incurred in January 2019.
Amounts borrowed and outstanding:
$ 1,000,000 at 9% borrowed specifically for the project
$ 8,000,000 at 10%
$ 6,000,000 at 11%
Prepare the journal entries to record the interest capitalization for 2018 and 2019,
respectively.
For interest calculations, use 2 decimal points)

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