Gen Combo Looseleaf Intermediate Accounting; Connect Access Card
10th Edition
ISBN: 9781260696325
Author: David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
INMACULATA TRUCKING., INC.
On April 1, 2020, Marie France organized a business called Inmaculata Trucking. Inc. During
April, the company entered into the following transactions:
Apr 1
Marie France deposited Php 500,000 cash in a bank account in the name of the business.
Purchased for Phr 250,000 a transportation equipmentto be used in the business.
Marie France paid 50% as down payment while the balance will be paid on May 15, 2020
Apr 1
Apr 1
Paid rental forthe month of April, Php 5,000
Apr 5
Earned and collected trucking income from Eva, Php 8,000
Apr 8
Earned trucking income from Julia, Php 30,000 on account and Julia will pay on May 8, 2020
Apr 10
Paid salaries of drivers, Php 10,000
Rented the vehicle to Joshua for Php 35,000, Joshua paid Php 20,000 on that date and
the balance on April 20
Apr 15
Apr 18
Paid electric bills for the month, Php 2,000
Apr 20
Collected from Joshua the balance of his April 15 account
Apr 25
Purchased office supplies, Php 2,300
Apr 29
Earned and…
Required :1. Record Journal Entries2. Post them into the ledger accounts3. Prepare the Trial Balance as on 31.12.2020
On December 31, 2024, Blossom Inc. borrowed $4,380,000 at 12% payable annually to finance the construction of a new building. In
2025, the company made the following expenditures related to this building: March 1, $525,600; June 1, $876,000; July 1,
$2,190,000; December 1, $2,190,000. The building was completed in February 2026. Additional information is provided as follows.
1.
2.
Other debt outstanding:
10-year, 13% bond, December 31, 2018, interest payable annually
6-year, 10% note, dated December 31, 2022, interest payable annually
March 1, 2025, expenditure included land costs of $219,000.
3. Interest revenue of $71,540 earned in 2025.
$5,840,000
2,336,000
Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building.
The amount of interest $
Knowledge Booster
Similar questions
- On January 1, 2021, LLB Industries borrowed $400,000 from Trust Bank by issuing a two-year, 8% note, with interest payable quarterly. LLB entered into a two-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. Its intent was to hedge the risk that general interest rates will decline, causing iPhone USB ue of its debt to increase. The agreement called for the company to receive payment based on a 8% fixed interest rate on a notional amount of $400,000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating (LIBOR) settlement rates were 8% at January 1, 6% at March 31, and 4% June 30, 2021. The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as indicated below. Fair value of interest rate swap Fair value of note payable January 1 0 $400,000 Required: 1. Calculate the net cash…arrow_forwardRiverbed Limited began operations on January 2, 2022. Riverbed employs 11 individuals who work eight-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows: Actual Hourly Wage Rate 2022 2023 $20.00 $21.00 Vacation Days Used by Each Employee 2022 0 Year in Which Vacation Time Was Earned 2022 2023 2023 8 Sick Days Used by Each Employee 2023 Assume that Riverbed Limited has chosen not to recognize paid sick leave until it is used, and has chosen to accrue vacation time at expected future rates of pay without discounting. Riverbed uses the following projected rates to accrue vacation time: 2022 3 Projected Future Pay Rates Used to Accrue Vacation Pay $20.75 per hour $21.60 per hourarrow_forwardInner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April and recorded the following entries. A. The owners invested $8,500 from their personal account to the business account B. Paid rent $850 with check #101. C. Initiated a petty cash fund $550 with check #102. D. Received $800 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $9,000, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement: Office supplies $250, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $37. Check #106. J. Increased Petty Cash by $100, check #107. A. Cash 8,500 Inner Resources Company, Capital 8,500 В. Rent Expense 850 Cash 850 C. Petty Cash 550 Cash 550 D. Cash 800 Services Income 800 E. Office Supplies 180 Cash 180 F. Computer Equipment 9,000…arrow_forward
- Prepare all of Blossom's journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)arrow_forward) Prepare the journal entry on February 5, 2025, for Cullumber when the wiring base is delivered to the customer. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Feb. 5, 2025 Feb. 5, 2025 Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit Creditarrow_forward1. Record Journal Entries 2. Post them into ledger accounts 3. Prepare the Trial Balance as on 31.12.2020arrow_forward
- Question 9 of 9 Cullumber Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Ivanhoe Structures Ltd. The contract is a non-cancellable fixed-price contract for $9.5 million. Billings and collections are lower in 2025 by $500,000 each. The following data pertain to the construction period (all figures in thousands). Costs for the year Estimated costs to complete Progress billings for the year (non-refundable) Cash collected for the year 2023 $4,185 5,115 3,860 2024 5.115 388 4,540 2025 200 -0- 1,100 3,300 4,590 1,910arrow_forwardOn July 31, 202O, Teal Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Teal issued a $282,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $177,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Teal made a final $105,000 payment to Minsk. Other than the note to Netherlands, Teal's only outstanding liability at December 31, 2020, is a $28,900, 8%, 6-year note payable, dated January 1, Q Ace Qu Ac 2017, on which interest is payable each December 31. Vie Ac Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. Que Accou…arrow_forwardPrepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forward
- On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. (a)arrow_forwardComplete the General Ledger based on the recorded journal entries. Remember to: write the date, explanation, and fill out the value in the corresponding DR or CR column. Your explanation should only contain the other account names as per your journal entries, separated by a "/" where necessary.arrow_forwardPrepare the journal entries for Oriole for this revenue arrangement on June 1, 2025 and September 30, 2025, assuming Oriole receives payment when the equiptment is delivered. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,