Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Dobbs made the following payments to Kiner, Inc. during 2020:
Date | Payment | ||
June 1, 2020 | $1,680,000 | ||
August 31, 2020 | 2,520,000 | ||
December 31, 2020 | 2,100,000 |
In order to help finance the construction, Dobbs issued the
following during 2020:
1. | $1,428,000 of 10-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. |
2. | 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2020. |
In addition to the 9% bonds payable, the only debt outstanding
during 2020 was a $357,000, 12% note payable dated January 1, 2016
and due January 1, 2023, with interest payable annually on January
1.
Compute the amounts of each of the following:
1. | Weighted-average accumulated expenditures qualifying for capitalization of interest cost. | |
2. | Avoidable interest incurred during 2020. | |
3. | Total amount of interest cost to be capitalized during 2020. |
1. | Weighted-average accumulated expenditures | $
|
||
2. | Avoidable interest | $
|
||
3. | Amount of interest cost to be capitalized | $
|
Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of...
Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Dobbs made the following payments to Kiner, Inc. during 2020: Date June 1, 2020 August 31, 2020 December 31, 2020 Payment $2,280,000 3,420,000 2,850,000 In order to help finance the construction, Dobbs issued the following during 2020: 1. $1,938,000 of 10-year, 9% bonds payable, issued at par...
Early in 2017, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2017 and was completed on December 31, 2017. Dobbs made the following payments to Kiner, Inc. during 2017: Date June 1, 2017 August 31, 2017 December 31, 2017 Payment $6,156,000 9,168,000 7,404,000 In order to help finance the construction, Dobbs issued the following during 2017: 1. $5,190,000 of 10-year, 9% bonds payable, issued at par...
Testbank Problem 140
Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design
and construct a complete modernization of Dobbs's manufacturing
facility. Construction was begun on June 1, 2020 and was completed
on December 31, 2020. Dobbs made the following payments to Kiner,
Inc. during 2020:
Date
Payment
June 1, 2020
$2,200,000
August 31, 2020
3,300,000
December 31, 2020
2,750,000
In order to help finance the construction, Dobbs issued the
following during 2020:
1.
$1,870,000 of 10-year, 9% bonds payable,...
Testbank Problem 140 Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Dobbs made the following payments to Kiner, Inc. during 2020: Payment Date $1,600,000 June 1, 2020 2,400,000 August 31, 2020 December 31, 2020 2,000,000 In order to help finance the construction, Dobbs issued the following during 2020 1. $1,360,000 of 10-year, 9% bonds payable,...
Early in 2017, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2017 and was completed on December 31, 2017. Dobbs made the following payments to Kiner, Inc. during 2017: Date Payment June 1, 2017 $2,000,000 August 31, 2017 3,000,000 December 31,2017 2,500,000 In order to help finance the construction, Dobbs issued the following during 2017: 1. $1,700,000 of 10-year, 9% bonds payable, issued at par on...
4.
total interest to be capitalize during 2010
Early in 2010, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2010 and was completed on December 31, 2010. Dobbs made the following payments to Kiner, Inc. during 2010: Date Payment June 1, 2010 $3,600,000 August 31, 2010 5,400,000 December 31, 2010 4,500,000 In order to help finance the construction, Dobbs issued the following during 2010: 1. $3,000,000...
. 2017 and was Question Early in 2017. Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobb's manufacturing facility. Construction was begun completed on December 31, 2017. Dobbs made the following payments to the during 2017: Payment June 1, 2017 $5,772,000 August 31, 2017 9,000,000 December 31, 2017 7,572,000 Date In order to help finance the construction, Dobbs issued the following during 2017: 1. $5.000.000 of 10-year bonds payable, issued at pron May 31, 2017,...
Early in 2020, Qatar Corporation engaged Emirate Ltd. to design and construct a complete modernization of Qatar’s manufacturing facility. Construction began on June 1, 2020, and was completed on December 31, 2020. Qatar made the following payments to Emirate Ltd. during 2020: Date Payment June 1, 2020$ 3,300,000 August 31, 20204,800,000 December 31, 20204,000,000 In order to help finance the construction, Qatar issued the following during 2020: 1.$ 2,000,000, ten-year, 9% bonds payable, issued at par on May 31, 2020,...
Early in 2020, Qatar Corporation engaged Emirate Ltd. to design and construct a complete modernization of Qatar’s manufacturing facility. Construction began on June 1, 2020, and was completed on December 31, 2020. Qatar made the following payments to Emirate Ltd. during 2020: Date Payment June 1, 2020$ 3,300,000 August 31, 20204,800,000 December 31, 20204,000,000 In order to help finance the construction, Qatar issued the following during 2020: 1.$ 2,000,000, ten-year, 9% bonds payable, issued at par on May 31, 2020,...
Early in 2015, Logan Corporation engaged Reese, Inc. to design and construct a complete modernization of Logan's manufacturing facility. Construction was begun on January 1, 2015 and was completed on December 31, 2015. Logan made the following payments to Reese, Inc. during 2015: Date Payment June 1, 2015 $2,400,000 August 31, 2015 3,600,000 December 31, 2015 3,000,000 In order to help finance the construction, Logan issued $2,000,000 of 10-year, 9% bonds payable, issued at par on January 2, 2015, with...