Problem 16:The following disbursements were made in relation to the construction of CAN'T BE WITH YOU TONIGHT Co.building which started January 1, 2020 and the building was completed August 31, 2021. CAN'T BE WITH YOuTONIGHT Company have the following loans outstanding during 2020 and 2021:Interest RateAmountSpecific loan15%2,000,000General loan12%15,000,000The following expenditures were paid during 2020 and 2021 to KASI NANDITO ASAWA KO Construction.January1, 20202,000,000July1, 20205,000,000November 1, 20203,000,000July1, 20211,000,000August31, 20212,000,00013,000,000Answer the following questions In accordance with PAS 16 and PAS 23.46. How much is the balance of the Building-in-progress at December 31, 2020?47. How much interest incurred was capitalized in 2020?48. How much interest incurred was recognized in the 2020 profit and loss statement?49. How much interest incurred was recognized in the 2021 profit and loss statement assuming the allborrowings are still outstanding as at December 31, 2021?50. How much interest incurred was capitalized in 2021?51. How much is the cost of the Building at August 31, 2021?

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Problem 16: The following disbursements were made in relation to the construction of CAN'T BE WITH YOU TONIGHT Co. building which started January 1, 2020 and the building was completed August 31, 2021. CAN'T BE WITH YOU TONIGHT Company have the following loans outstanding during 2020 and 2021: Interest Rate Amount Specific loan General loan 15% 2,000,000 12% 15,000,000 The following expenditures were paid during 2020 and 2021 to KASI NANDITO ASAWA KO Construction. January July November 1, 2020 1, 2020 2,000,000 1, 2020 5,000,000 3,000,000 July August 1, 2021 1,000,000 2.000,000 13,000,000 31, 2021 Answer the following questions In accordance with PAS 16 and PAS 23. 46. How much is the balance of the Building-in-progress at December 31, 2020? 47. How much interest incurred was capitalized in 2020? 48. How much interest incurred was recognized in the 2020 profit and loss statement? 49. How much interest incurred was recognized in the 2021 profit and loss statement assuming the all borrowings are still outstanding as at December 31, 2021? 50. How much interest incurred was capitalized in 2021? 51. How much is the cost of the Building at August 31, 2021?

Problem 16: The following disbursements were made in relation to the construction of CAN'T BE WITH YOU TONIGHT Co. building which started January 1, 2020 and the building was completed August 31, 2021. CAN'T BE WITH YOU TONIGHT Company have the following loans outstanding during 2020 and 2021: Interest Rate Amount Specific loan General loan 15% 2,000,000 12% 15,000,000 The following expenditures were paid during 2020 and 2021 to KASI NANDITO ASAWA KO Construction. January July November 1, 2020 1, 2020 2,000,000 1, 2020 5,000,000 3,000,000 July August 1, 2021 1,000,000 2.000,000 13,000,000 31, 2021 Answer the following questions In accordance with PAS 16 and PAS 23. 46. How much is the balance of the Building-in-progress at December 31, 2020? 47. How much interest incurred was capitalized in 2020? 48. How much interest incurred was recognized in the 2020 profit and loss statement? 49. How much interest incurred was recognized in the 2021 profit and loss statement assuming the all borrowings are still outstanding as at December 31, 2021? 50. How much interest incurred was capitalized in 2021? 51. How much is the cost of the Building at August 31, 2021?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 48P

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