Question

On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished...

On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

January 1, 2018 $ 330,000
September 1, 2018 $ 495,000
December 31, 2018 $ 495,000
March 31, 2019 $ 495,000
September 30, 2019 $ 330,000


Dreamworld had $6,500,000 in 12% bonds outstanding through both years.

The average accumulated expenditures for 2019 by the end of the construction period was:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 328,000 September 1, 2018 $ 486,000 December 31, 2018 $ 486,000 March 31, 2019 $ 486,000 September 30, 2019 $ 328,000 Dreamworld had $6,200,000 in 12% bonds outstanding through both years. What was the final cost of Dreamworld's warehouse?
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 343,000 September 1, 2018 $ 501,000 December 31, 2018 $ 501,000 March 31, 2019 $ 501,000 September 30, 2019 $ 343,000 Dreamworld had $6,700,000 in 14% bonds outstanding through both years. What was the final cost of Dreamworld's warehouse?
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 300,000 September 1, 2018 $ 450,000 December 31, 2018 $ 450,000 March 31, 2019 $ 450,000 Dreamworld had the following debt obligations outstanding during both years: Construction loan, 10%             $500,000              Long-term note, 12%                      $2,500,000 Required: What would Dreamworld's capitalized interest be in 2018? $45,000 $134,000...
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 300,000 September 1, 2018 $ 450,000 December 31, 2018 $ 450,000 March 31, 2019 $ 450,000 Dreamworld had the following debt obligations outstanding during both years: Construction loan, 10%             $500,000              Long-term note, 12%                      $2,500,000 Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $6,000,000, 8% note $9,000,000, 3% bonds Construction expenditures incurred were as follows: July 1, 2018 $ 580,000 September 30, 2018 870,000 November 30, 2018 870,000 January 30, 2019 810,000 The company’s fiscal year-end is December 31. Required: Calculate...
On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its...
On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $11,500,000 and an effective interest rate of 10%. Construction expenditures incurred during 2018 were as follows: January 1 $ 650,000 March 1 690,000 July 31 570,000 September 30 750,000 December 31 450,000 Date Expenditure Weight Average January 1...
On January 1, 2016, Roger Company began construction of a new warehouse. The building was finished...
On January 1, 2016, Roger Company began construction of a new warehouse. The building was finished and ready for use on December 31, 2016. Roger Spent $4,650,000 on the building. These expenditures were made evenly throughout the year. Roger's only outstanding interest-bearing debt throughout 2016 was a $5,000,000 not payable. The interest rate on this debt was 6%. What amount should be reported as an interest expense on Roger's 2016 income statement?
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note $6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2018 $ 430,000 September 30, 2018 630,000 November 30, 2018 630,000 January 30, 2019 570,000 The company’s fiscal year-end is December 31. Required: Calculate...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $2,050,000 at 11% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $6,000,000, 16% bonds $4,000,000, 11% long-term note Construction expenditures incurred during 2018 were as follows: January 1 $ 840,000 March 31 1,440,000 June 30 1,088,000 September 30 840,000...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 1,820,000 March 1, 2018 1,440,000 June 30, 2018 1,640,000 October 1, 2018 1,440,000 January 31, 2019 396,000 April 30, 2019 729,000 August 31, 2019 1,026,000 On January 1, 2018, the company obtained a $4,400,000 construction loan with a 14% interest rate....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT