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On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for...

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Accounting

On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,900,000 and an effective interest rate of 7%. Construction expenditures incurred during 2021 were as follows Check my January 1 $590,000 March 1 654,000 July 31 534,000 September 30 690,000 December 31 390,000 Required: Calculate the amount of interest capitalized for 2021. Dato January 1 March 11 July 31 September 30 December 31 Accumulated expenditure Expenditure x x x Weight Average Interest Capitalized Amount Prev 2 of 2 Next 2 March 1 654,000 July 31 534,000 September 30 690,000 December 31 390,000 3 points eBook References Required: Calculate the amount of interest capitalized for 2021. Date January 1 March 11 July 31 Expenditure September 30 December 31 Accumulated expenditure Average accumulated expenditures Amount x Weight Average Interest Rate x 196 Capitalized Interest Check

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