The following transactions pertain to the general borrowings made during 2021 by Jeon Company in connection with the construction of the company's new warehouse: 8% bank loan- P2.400,000 6% short-term note- P1,600,000 8% long-term note- P2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: January 1- P400,000 March 31- P1,000,000 June 30- P1,200,000 September 30- P1,000,000 December 31- P400,000 How much is the capitalizable borrowing cost of Jeon Company? * O P448,000 O P298,600 O P149,400 O None

The following transactions pertain to the general borrowings made during 2021 by Jeon Company in connection with the construction of the company's new warehouse: 8% bank loan- P2.400,000 6% short-term note- P1,600,000 8% long-term note- P2,000,000 The construction started on January 1, 2021 and the warehouse was completed on December 31, 2021. Expenditures on the warehouse were as follows: January 1- P400,000 March 31- P1,000,000 June 30- P1,200,000 September 30- P1,000,000 December 31- P400,000 How much is the capitalizable borrowing cost of Jeon Company? * O P448,000 O P298,600 O P149,400 O None

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 94PSB

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