PINAUTANG started constructing a building for its own use in January 1, 2020. PINAUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Interest Rate Amount of loan Cost 15% P10,000,000 P 1,500,000 5% 30,000,000 1,500,000 Total P40,000,000 P3,000,000 On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per annum, to specifically fund its expected construction on March 1, 2020,
PINAUTANG started constructing a building for its own use in January 1, 2020. PINAUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Interest Rate Amount of loan Cost 15% P10,000,000 P 1,500,000 5% 30,000,000 1,500,000 Total P40,000,000 P3,000,000 On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per annum, to specifically fund its expected construction on March 1, 2020,
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 106.3C
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Question
PINAUTANG started constructing a building for its own use in January 1,
2020. PINAUTANG provided the following information related to the
construction:
Outstanding loans of the Company at January 1, 2020:
Interest
Interest Rate Amount of loan
Cost
15%
P10,000,000
P 1,500,000
5%
30,000,000
1.500.000
Total
P40,000,000
P3.000.000
On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per annum, to specifically fund its expected construction on March 1, 2020.
January 1, 2020
P1,000,000
May 31, 2020
3,000,000
July 1, 2020
8.000.000
November
31.2020
6.000.000
December 31.
2020
2.000.000
How much is the total cost of the constructed asset as of December 31,2020?
The amount of interest expense taken to profit or loss for 2020 is?
Transcribed Image Text:Problem 2
PINAUTANG started constructing a building for its own use in January 1,
2020. PINAUTANG provided the following information related to the
construction:
Outstanding loans of the Company at January 1, 2020:
Interest
Interest Rate Amount of loan
Cost
15%
P10,000,000
P 1,500,000
5%
30,000,000
1,500,000
Total
P40,000,000
P3,000,000
On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per
annum, to specifically fund its expected construction on March 1, 2020.
Transcribed Image Text:On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per
annum, to specifically fund its expected construction on March 1, 2020.
January 1, 2020
P1,000,000
May 31, 2020
3,000,000
July 1, 2020
8,000,000
November
6,000,000
31,2020
December 31,
2,000,000
2020
How much is the total cost of the constructed asset as of December 31,
2020?
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