Company Corp. is constructing a building. The following information pertains to the construction of the...
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Company Corp. is constructing a building. The following information pertains to the construction of the building. Use an Excel spreadsheet to prepare journal entries and move amounts to the general ledger. Afterward, prepare the trial balances on the last tab of the Excel file.
1) On 1/1/2016, the company borrows $2,000,000 at 12% for 8 years to finance the new construction project. Payments are due quarterly with the first due date falling on 3/31/2016. Prepare the journal entries for each quarters payment.
2) Expenditures made on the project during 2015 are as follows: 1/1/2016 of $300,000; 5/1/2016 of $400,000; 7/1/2016 of $1,100,000; 10/1/2016 of $400,000. Journalize these capital expenditures.
3) Make the adjusting entry for capitalization of interest. Put any capitalized interest in the PP&E Subledger as Work-in-Process. Company Corp has $4,500,000 of general debt outstanding at 11% during 2016.
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