On March 1, 2017, Crane Company purchased land for an office site by paying $2600000 cash....
On March 1, 2017, Crane Company purchased land for an office
site by paying $2600000 cash. Crane began construction on the
office building on March 1. The following expenditures were
incurred for construction:
| Date | Expenditures | |
| March 1, 2017 | $1700000 | |
| April 1, 2017 | 2460000 | |
| May 1, 2017 | 4400000 | |
| June 1, 2017 | 4700000 |
The office was completed and ready for occupancy on July 1. To help
pay for construction, and purchase of land $3500000 was borrowed on
March 1, 2017 on a 9%, 3-year note payable. Other than the
construction note, the only debt outstanding during 2017 was a
$1400000, 12%, 6-year note payable dated January 1, 2017.
The actual interest cost incurred during 2017 was
Homework Answers
The actual interest cost incurred during 2017 was: $430,500
Interest cost incurred = ($3500000 x 9% x 10/12) + ($1400000 x 12%) = $262500 + $168000 = $430500
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On March 1, 2017, Crane Company purchased land for an office
site by paying $2600000 cash....
On March 1, 2017, Sheridan Company purchased land for an office site by paying $2600000 cash. Sheridan began constructio...
On March 1, 2017, Sheridan Company purchased land for an office
site by paying $2600000 cash. Sheridan began construction on the
office building on March 1. The following expenditures were
incurred for construction:
Date
Expenditures
March 1, 2017
$ 1810000
April 1, 2017
2490000
May 1, 2017
4420000
June 1, 2017
4700000
The office was completed and ready for occupancy on July 1. To help
pay for construction, and purchase of land $3670000 was borrowed on
March 1, 2017 on...
9. On March 1, 2020, Bonita Industries purchased land for an office site by paying $2700000...
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2. On March 1, 2017, Newton Company purchased land for an office site by paying $2,700,000...
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On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2014 $ 1,200,000 April 1, 2014 1,680,000 May 1, 2014 3,000,000 June 1, 2014 4,800,000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $2,400,000 was borrowed on March 1, 2014 on...
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On March 1, 2020, Concord Corporation purchased land for an office site by paying $2740000 cash. Concord began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $ 1790000 April 1, 2020 2530000 May 1, 2020 4490000 June 1, 2020 4880000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3560000 was borrowed on March 1, 2020 on a...
1.On March 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash....
1.On March 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $1780000 April 1, 2020 2510000 May 1, 2020 4510000 June 1, 2020 4720000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a...
Crane Company purchased land as a factory site for $1315000. Crane paid $118000 to tear down...
Crane Company purchased land as a factory site for $1315000.
Crane paid $118000 to tear down two buildings on the land. Salvage
was sold for $8400. Legal fees of $5380 were paid for title
investigation and making the purchase. Architect's fees were
$46100. Title insurance cost $3900, and liability insurance during
construction cost $4200. Excavation cost $15540. The contractor was
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On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...
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On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Additionally, Blackstone paid a real estate broker's commission of $50,000, legal fees of $8,000, and title insurance of $25,000. The closing statement indicated that the land value was $570,000 and the building value was $170,000. Shortly after acquisition, the building was razed at a cost of $89,000. Blackstone entered into a $4,400,000 fixed-price contract with Barnett Builders, Inc., on March...
On March 1, 2017, Sheridan Company purchased land for an office
site by paying $2600000 cash. Sheridan began construction on the
office building on March 1. The following expenditures were
incurred for construction:
Date
Expenditures
March 1, 2017
$ 1810000
April 1, 2017
2490000
May 1, 2017
4420000
June 1, 2017
4700000
The office was completed and ready for occupancy on July 1. To help
pay for construction, and purchase of land $3670000 was borrowed on
March 1, 2017 on...
9. On March 1, 2020, Bonita Industries purchased land for an office site by paying $2700000 cash. Bonita began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $ 1700000 April 1, 2020 2490000 May 1, 2020 4590000 June 1, 2020 4890000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3550000 was borrowed on March 1, 2020...
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Crane Company purchased land as a factory site for $1315000.
Crane paid $118000 to tear down two buildings on the land. Salvage
was sold for $8400. Legal fees of $5380 were paid for title
investigation and making the purchase. Architect's fees were
$46100. Title insurance cost $3900, and liability insurance during
construction cost $4200. Excavation cost $15540. The contractor was
paid $4400000. An assessment made by the city for pavement was
$9700. Interest costs during construction were $260000.
The cost...
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