Exercise 10-7
Flint Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,957,500 on January 1, 2017. Flint expected to complete the building by December 31, 2017. Flint has the following debt obligations outstanding during the construction period.
Construction loan-10% interest, payable semiannually, issued December 31, 2016
Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2018
Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2021 $2,015,800 1,606,700 993,300
Assume that Flint completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,195,900, and the weighted average amount of accumulated expenditures was $3,810,800. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to O decimal places, e.g. 5,275. )
Compute the depreciation expense for the year ended December 31, 2018. Flint elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $299,200. (Round answer to O decimal places, e.g. 5,275.) Depreciation Expense $
Flint furniture company started construction of a combination office and warehouse building for its own use at an estimated cost of 4957500 on january 1 2017.
Exercise 10-7 Flint Furniture Company started construction of a combination office and warehouse building for its own u...
Flint Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,035,800 on January 1, 2017. Flint expected to complete the building by December 31, 2017. Flint has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 $1,991,900 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,607,900 Long-term loan-11% interest, payable on January 1 of...
Flint Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,024,700 on January 1, 2017. Flint expected to complete the building by December 31, 2017. Flint has the following debt obligations outstanding during the construction period Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,002,200 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,598,900 Long-term loan-11% interest, payable on January 1 of...
Question 1 Waterway Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,957,500 on January 1, 2017. Waterway expected to complete the building by December 31, 2017. Waterway has the following debt obligations outstanding during the construction period. Construction loan-10% interest, payable semiannually, issued December 31, 2016 Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-9% interest, payable on January 1 of...
Wildhorse Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,200 on January 1, 2017. Wildhorse expected to complete the building by December 31, 2017. Wildhorse has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,007,800 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,588,200 Long-term loan-11% interest, payable on January 1 of...
Larkspur Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,004,000 on January 1, 2017. Larkspur expected to complete the building by December 31, 2017. Larkspur has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 $1,990,900 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,599,600 Long-term loan-11% interest, payable on January 1 of...
Exercise 10-07 Wildhorse Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $14,000,000 on January 1, 2020. Wildhorse expected to complete the building by December 31, 2020. Wildhorse has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,600,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,920,000 Long-term loan-11% interest, payable on January...
Stellar Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $11,000,000 on January 1, 2020. Stellar expected to complete the building by December 31, 2020. Stellar has the following debt obligations outstanding during the construction period. $4,400,000 Construction loan-12% interest, payable semiannually, issued December 31, 2019 3,080,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of...
Carla Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $6,000,000 on January 1, 2020. Carla expected to complete the building by December 31, 2020. Carla has the following debt obligations outstanding during the construction period. Construction loan-14% interest, payable semiannually, issued December 31, 2019 $2,400,000 Short-term loan-12% interest, payable monthly, and principal payable at maturity on May 30, 2021 1,680,000 Long-term loan-13% interest, payable on January 1 of...
Sheridan Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,500,000 on January 1, 2020. Sheridan expected to complete the building by December 31, 2020. Sheridan has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year....
Oriole Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,500,000 on January 1, 2020. Oriole expected to complete the building by December 31, 2020. Oriole has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,400,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,780,000 Long-term loan-11% interest, payable on January 1 of...
> How did you calculate "interest on remaining loan unto weighted average expenditure"?
JPate Thu, Jun 17, 2021 10:18 AM